Government introduced the Broad-based Black Economic Empowerment Act, No. 53 of 2003 and the Broad-based Black Economic Empowerment Codes of Good Practice (‘the Codes’) in 2007 to address the economic inequalities in South Africa by incentivising companies to include black people in economic activities. These incentives relate to implementation of preferential procurement, which is meant to favour companies that are BEE-compliant. Based on the literature and government’s intention with BEE policies, an assumption developed that companies with greater BEE compliance, which is measured through a BEE scorecard as per the Codes, would perform better in terms of market share through their revenue and in terms of profits. The main objective of this study was to carry out an in-depth analysis of the relationship between BEE scores and revenue growth and profitability of JSE-listed companies. This was done to determine whether the efforts by government of incentivising companies to be more BEE compliant are effective. This study was conducted as a two-part model consisting of regression analysis and ttest to determine whether there is a relationship between BEE scores and revenue and profitability. The regression analysis focused on the top 100 most black-empowered companies. The t-test was a comparison of two data sets, which consisted of companies in the top 100 most black-empowered companies and those that do no fall among the top 100 most black-empowered companies. The results showed that, at the time of this research, there were no significant relationships between BEE scores and revenue and profitability. The analysis of the research findings collectively demonstrated that for both the tests (regression and ttest), the relationship between revenue and profitability could not be established. Hence, the results postulate that BEE compliance does not produce the desired results for the companies, which can be translated into better profitability and market share. / Financial Accounting / M. Phil. (Accounting Sciences)

M.Comm. / South Africa's new political dispensation has indicated that it regards unbundling of conglomerates and antitrust policy as appropriate means to ensure black empowerment and create wealth among the victums of the apartheid-era. Unbundling will however not necessarily aid the distribution of wealth due to the existing shareholder structure in the country. The creation of an entrepreneural class is seen as an effective means to alleviate the jobless problem and empower the masses, but will be difficult to establish without help from government, and more importantly, big business. PURPOSE The main purpose of this study is to investigate the causes of bundling and current business size and how black empowerment and wealth creation can be addressed through new structures. METHOD OF STUDY In this study information was obtained from existing literature sourced from the Congress of South African Trade Unions, Small Business Development Corporation, investment community, Business Periodical Index and libraries at Rand Afrikaans University and University of South Africa. FINDINGS The historic reasons for current business size are essentially the same as those in the rest of the world, with the exception that politics played a major role in South Africa. The exclusion of certain population groups led to political instability and the sanctions-era, which increased the tendency for big business to bundle or form conglomerates. Evidence exists that unbundling will not create wealth by distributing ownership of companies but could in fact only benefit existing shareholders. Black empowerment and wealth creation can be established by the forming of new pyramid-structures and the creation of an entrepreneural class with help from existing conglomerates and government. South Africa is part of the international economic environment and needs big businesses in order to be competitive. Small businesses on the other hand can be utilized to address the unemployment problem especially in rural areas. Conglomerates can assist small businesses with mangement and finance which should prove to be a better alternative in the long run than unbundling.