Abstract
The construction industry is one of the sectors that contribute significantly to the growth and development of the Zambian economy. Construction Small, Medium and Micro Enterprises (SMMEs) play a significant role in reducing unemployment and poverty through the creation of jobs for semi-skilled and unskilled individuals. However, they are restricted through the challenges they encounter daily in their operation. Hence, this study assesses the growth of SMMEs in the Zambian construction industry. Detailed literature was reviewed, and a structured questionnaire was used to collect data. The respondents were owner of construction SMMEs in Zambia. These owners had various qualifications within the built environment. A total of 150 questionnaires were sent out, and 105 were returned, representing a response rate of 70%. Descriptive and Exploratory Factor Analysis (EFA) were used to analyse the data. From the findings it was revealed that the Citizen Economic Empowerment Commission, the Government policy of pronouncement on contracts to subcontract MSMEs, the Zambia Development Agency and Road Construction as well as management supervision training programmes are the support policies and programmes that a majority of the construction firm owners in Zambia are aware of and they regarded them to be effective, having implemented them in their various entities. Furthermore, the study reveals the barriers to the growth of the SMMEs in the Zambian construction industry such as poor financial control, poor cash flow management, corruption, credit problems/insolvency, lack of management skills and poor record keeping. In addition, the findings show the enhancement of employment creation, the improved development of unskilled and semi-skilled employees and the contribution to the expansion of the economy as the benefits of the growth of SMMEs in Zambia. Moreover, the findings reveal good financial management, adequate financial record management training, financial risk identification, good cash flow management, efficient strategic planning, the high intellectual capacity of employees, efficient human resource management practices and good management skills as the drivers of the growth of SMMEs. From the findings of the study it can be concluded that the growth of the SMMEs is always restricted and limited, regardless of the good economic condition of the country and the construction industry. Therefore, it is recommended that large construction firms should mentor at least three SMMEs, which will make large companies to use SMMEs as sub-contractor so to train/ mentor them.
M.Tech. (Construction Management)