Exploring the Effectiveness of Broad-Based Black Economic Empowerment Policy Implementation in Promoting Economic Development for MSMEs in Gauteng Province

South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) policy was introduced to redress historical economic injustices and stimulate inclusive economic growth. Despite these intentions, black-owned Micro, Small, and Medium Enterprises (MSMEs) in Gauteng Province, South Africa’s foremost economic hub, continue to face persistent barriers, including inadequate access to finance, complex compliance requirements, and constrained market participation. This study examines the effectiveness of B-BBEE policy implementation in advancing economic development for black-owned MSMEs in Gauteng. It seeks to identify specific barriers to compliance and unpack the lived experiences and perceptions of MSME owners regarding B-BBEE as a mechanism for equitable economic transformation. The research is underpinned by three theoretical frameworks: Schumpeter’s Innovation Theory, the Neoclassical Growth Theory, and the Theory of Change, collectively enabling a holistic understanding of how empowerment policies influence innovation, competitiveness, and sustainability among MSMEs. Adopting an interpretivist paradigm and a qualitative research approach, the study employs a cross-sectional comparative case study design. The target population comprises black-owned MSMEs from diverse economic sectors, with a purposive and snowball sampling strategy guiding the selection of 15 MSME owners and 10 policy practitioners. Data collection will involve semi-structured interviews and document analysis, while thematic analysis, assisted by the COSTAQDA software, will facilitate coding, concept mapping, and sentiment analysis. Ethical compliance will include formal ethics committee approval and informed consent from all participants. This research holds critical value in evaluating the real-world implications of B-BBEE, offering insights to enhance policy effectiveness, foster entrepreneurial empowerment, and promote sustainable, inclusive economic growth in South Africa.