The co-operative as an appropriate form of enterprise for Black Economic Empowerment

English: In the South African context, BEE is not only regarded as a moral and social imperative, but also as a legislative one. BEE functions on two levels, namely the creation and sustenance of wealth, and the creation of opportunities, in order to widen the economic sphere. If successful transformation is to be achieved in South Africa, it is of vital importance that practical suggestions for its implementation be investigated. The co-operative has been described by international organisations like the International Co-operative Alliance, as a business enterprise that develops and /or empowers people through self-help. Locally the co-operative both on SMME and large corporate scale has been identified as a potential vehicle to drive the social and economic upliftment of the people of the South Africa. The Co-operatives Act 14 of 2005 was promulgated to give effect to this. Co-operatives have the following characteristics that make them ideally suited to the current South African situation: they are versatile in their application, they are accessible enterprises as initial establishment is cost effective and they are generally easy to establish, they provide both a social and economic function (dual function) to their members, generally apply a one-member-one-vote-system in management thereby promoting democratic principles, and they promote the concepts of individualism and autonomy within their structures. A successful co-operative enhances both individual and collective human dignity and promotes the values of ubuntu, which uplifts people on all levels, thereby complying with both the social and economic aspects of BEE in the creation of opportunities to widen the economic sphere. Furthermore, the cooperative as an enterprise complies with the BEE scorecard as well as with the Codes of Good Practice which were drafted by government in accordance with the provisions of the Broad-based Black Economic Empowerment Act 53 of 2003.