A rainbow nation hunting for opportunities abroad: : A study on the implications of BEE on South African SMMEs when they internationalize

Abstract: Due to South Africa's history of apartheid the current regime have implemented the Black Economic Empowerment (BEE) policy to rectify the discrimination against previously disadvantaged groups. The BEE policy gives incentives for companies to hire non-whites in higher positions, like management, and the ambition with this is to create equality. With a qualitative research method and using an abductive approach this study research how South African SMMEs are influenced by the BEE policy when they internationalize. This study concludes that South African SMMEs are differently influenced by the BEE policy when they internationalize. Furthermore, this research shows that the impact is highly dependent on the business owners ethnicity. The influence the BEE policy had on black owned business was predominantly positive. However, the effect the BEE policy had on white owned businesses was more complex. As far as this research shows, the influence the BEE policy had on SMMEs when they internationalize are an extension of how the BEE policy influenced them in the domestic market. The authors recommendation is that the relationship between BEE and internationalization is further investigated and that this study is complemented with a quantitative research.