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The influence of small, medium, and micro-enterprise contractors on construction projects in South Africa
Thesis   Open access

The influence of small, medium, and micro-enterprise contractors on construction projects in South Africa

Khomotjo Gerald Maime
M.Eng., University of Johannesburg
2024
Handle:
https://hdl.handle.net/10210/519463

Abstract

Construction industry Government contractors Small Business
This study examines the influence of Small, Medium, and Micro Enterprise (SMME) contractors on project timelines within South Africa’s construction sector. It addresses internal and external challenges SMME contractors face that often lead to project delays and explores strategies to mitigate them. A mixed-methods approach was employed, combining quantitative data from structured questionnaires with qualitative insights obtained through interviews with key stakeholders, such as clients, contractors, and consultants. The quantitative analysis identified significant internal factors contributing to delays, such as poor financial management, lack of skilled labour, and inadequate training. Additionally, external factors like limited access to finance, bureaucratic inefficiencies, and complex regulatory compliance further extend project timelines. Qualitative thematic analysis revealed that while SMME contractors are crucial for job creation and economic growth, their limited resources and operational capacity pose risks to timely project completion. The findings suggest that enhancing access to finance, providing targeted training programs, and fostering stronger collaborations between large contractors and SMMEs are vital strategies for reducing delays. Moreover, streamlining government regulations could alleviate bureaucratic burdens and improve project efficiency. The study concludes with practical recommendations aimed at improving the performance of SMME contractors, thereby assisting in optimizing project delivery and enhancing the overall efficiency of the South African construction industry.
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