Wrestling with empowerment: a BBBEE (Enterprise Development) case study and model for the waste sector from Durban

Abstract

Small business, including small, medium and micro-sized enterprises (SMMEs), is seen as the corner stone of economic development in South Africa, with reported contributions of up to 42% to the Gross Domestic Product (GDP). The South African Government recognises the contributions made by this sector, and amongst other initiatives has gazetted the Broad-Based Black Economic Empowerment (BBBEE) Act (53/2003): Codes of Good Practice, to assist in strengthening and supporting this emerging sector. This paper discusses a successful case study where an emerging SMME or developing organisation (DevO) in the waste management sector received support in the form of mentorship and training from an established organisation (EstO) over a three year period. Lessons learnt from two other failed attempts at developing similar relationships with other DevO are also discussed. These lessons include the selection of beneficiaries for this type of program and how factors such as physical proximity or location of the stakeholders, frequency of interaction, demonstrated eagerness or enthusiasm for the program, the setting of milestones and the maturity of the DevO influenced the success or failure of the relationship. The paper also talks to the challenge of showing progress from one assessment period to another, the importance of achieving buy-in from stakeholders, the administrative burden and the expectations held by stakeholders.