The strategic integration of the Youth Employment Service into corporate value chains: an ecosystem perspective on Broad-Based Black Economic Empowerment compliance

Abstract

This paper hypothesises that strategically integrating the Youth Employment Service (YES) into corporate value chains may enhance Broad-Based Black Economic Empowerment (B-BBEE) compliance while advancing inclusive economic outcomes. Established in 2018 as part of South Africa’s transformation policy mix, YES was designed to address youth unemployment by incentivising firms to create quality work opportunities. However, its implementation has often remained peripheral to core business functions. Evolving B-BBEE policy expectations now encourage firms to embed developmental initiatives within operational ecosystems rather than treat them as stand-alone compliance activities. Guided by an ecosystem perspective, the paper emphasises the interdependence of firms, regulatory structures, and implementing partners in co-creating value. A literature-based methodology was employed, drawing on academic publications, policy documents, programme reports, and industry sources related to YES, B-BBEE, and youth employability. The literature suggests that embedding YES participants in skills-intensive segments of corporate value chains may support B-BBEE objectives and youth capability development. Ecosystem-aligned implementation may also strengthen collaboration and contribute to longer-term socio-economic outcomes. The paper addresses the gap between policy intention and corporate practice, positioning YES as a value-creation mechanism aligned with the UN Sustainable Development Goals (Goal 4,8 & 10) and South Africa’s National Development Plan.