Abstract
M.Comm.
When the ANC government came into power in 1994 various policies aimed at redressing inequalities of the past enforced on the black majority by apartheid were introduced. Government envisaged creating a conducive environment through BBBEE, in which the black majority could participate in economic activities of the country. However, these policies had unintended consequence of empowering a few powerful black individuals, stifling true entrepreneurial activity and reducing economic value creation. Currently, BEE partners acquire equity from established white businesses at an agreed price without being operational in those entities. From this view point, the present study attempted to understand what appears to be the failure of BBBEE policy to meet its objectives of increasing the number of black people who manage, own and control the country‟s economic activities in the mining and financial services industries. BBBEE appears to inhibit the promotion, development and inclusion of black entrepreneurs into the country‟s formal economy and thereby constrains entrepreneurship.
An exploratory research approach using qualitative research was followed. The population comprised of 15 entrepreneurs and advisers from both the mining and financial services industries.