As we gear up for National Entrepreneurship Month, I’m reminded of the power of Broad-Based Black Economic Empowerment (B-BBEE) and Small, Micro, and Medium Enterprises (SMMEs) in building our economy and creating lasting change in South Africa. These aren’t just policies on paper; they’re the very heartbeat of our country’s growth and progress.
Zanele Shabangu, Consultant at The BEE Chamber, says: “B-BBEE and support for SMMEs are not just initiatives — they are the lifeblood of our economy. By empowering Black entrepreneurs, we are not only addressing historical inequalities, but we are also unlocking immense potential for job creation, innovation, and sustainable growth.”
The Department of Trade, Industry and Competition (the dtic) defines B-BBEE as a strategic effort to empower all Black South Africans, including women, youth, and individuals with disabilities. The goals of B-BBEE include increasing their representation in business ownership and management, fostering skills development, and promoting equitable participation in the economy. The legislation is designed to combat the pervasive inequalities that persist in South African society, a legacy of apartheid.
Statistics highlight the significant impact of SMMEs, which accounted for approximately 22% of business turnover in South Africa—around R2.3 trillion—as of 2019. These enterprises created over ten million jobs, proving their essential role as the “wheels of the economy,” as noted by Viresh Harduth, Vice President of Small Business at Sage Africa and the Middle East.
However, challenges remain. Despite nearly three decades of democracy and 20 years of B-BBEE legislation, transformation has been slow. Shabangu emphasises the need for a renewed focus on education and awareness of B-BBEE scorecard elements to ensure that organisations understand their importance and potential impact.
“SMMEs are uniquely positioned to address South Africa’s high unemployment rates, which stood at 32.1% as of late 2023,” Shabangu continues. “By fostering an environment that supports and nurtures these enterprises, we can create jobs and stimulate economic growth.”
SMMEs play a crucial role in driving economic growth and development in South Africa. These enterprises, often referred to as the backbone of the economy, contribute significantly to job creation, innovation, and overall prosperity. Here are a few areas for SMMEs to focus on:
Job creation
SMMEs are powerful engineers of job creation in South Africa, they account for a substantial portion of employment opportunities, particularly for individuals who might struggle to secure jobs in larger corporations. As SMMEs expand and thrive, they contribute to reducing unemployment rate and alleviating poverty. The nature of SMMEs allows them to adapt quickly to changing market demands resulting in more agile hiring processes.
Innovation and entrepreneurship
Innovation is at the heights of SMMEs, driving competitiveness and growth. The enterprises often operate in niche markets, where their agility enables them to experiment with innovative ideas and approaches. By doing so they contribute to the culture of entrepreneurship and creativity, fostering a climate that encourages risk-taking and the pursuit of innovative solutions. SMMEs also tend to work closely with universities, research institutions and other stakeholders which further fuels the spirit of innovation.
Skills development
SMMEs offer fertile ground for skills development and capacity building due to their smaller size, employees often wear multiple hats, gaining broader skills set and valuable experience. This diverse experience equips workers with transferable skills that can be beneficial throughout their careers, additionally, the learning environment in SMMEs tends to be more hand-on and collaborative facilitating knowledge sharing and skills advancement.
“This collaborative approach is essential for social and economic development, especially in a country grappling with profound inequality and poverty,” says Shabangu.
As South Africa marks National Entrepreneurship Month, The BEE Chamber calls on all stakeholders — government, private sector, and civil society — to recommit to empowering Black entrepreneurs and supporting SMMEs as a pathway to a more inclusive, diverse, and thriving economy.
For more information on The BEE Chamber and the services it provides, please visit The BEE Chamber website, or contact the team via members@bee.co.za or 011 726-3052.