- Title
- Development of construction small, medium and micro enterprise in the South African construction industry
- Creator
- Tshikhudo, Livhuwani Murendeni
- Subject
- Construction industry - South Africa, Small business - South Africa, Construction industry - South Africa - Management
- Date
- 2016
- Type
- Masters (Thesis)
- Identifier
- http://hdl.handle.net/10210/213647
- Identifier
- uj:21179
- Description
- Abstract: Large construction enterprises continue to restructure and downsize due to constant changes in the economic demands in South Africa, Small, Medium and Micro Enterprises (SMMEs) in the construction industry have come to play an increasingly imperative role in the industry and the South Africa's economic development. Construction SMMEs considerably create a vast amount of job opportunities due to their labour intensive nature and technologies used. However Construction SMMEs are faced with barriers denying them from further development and growth hence only a few survive and remain sustainable. Therefore this study investigates the development of construction SMMEs in the Gauteng Province of South Africa. A literature survey was carried out followed by primary data gathered through a structured questionnaire which was developed for 120 SMME construction firms to establish their perceptions on the development of SMMEs in the construction industry. Findings from the study indicate that producing quality work, good cash flow management, good contractual understanding, having a business plan, effective communication channel in the firm, maintaining good relationships with clients, proper record keeping, sensible operating costs, recruiting qualified staff and availability of effective marketing strategies were the main critical success factors required by SMMEs in the Gauteng Province for their firms survival in the construction industry. The most recommended solutions for the development of construction SMMEs in Gauteng Province of South Africa were; education / skills / qualifications; attending leadership training courses; availability of financial benefits, rewards and incentives; adapting practices of current larger construction companies and learning new skills that will enhance capability. The study further revealed that the critical factors contributing to the failure of construction SMMEs in Gauteng Province of South Africa are; corruption; insolvency / credit problems; poor cash flow management; accessing finance; lack of management skills; lack of general business skills; poor time management; poor estimation practices ; poor record keeping and low profit margins due to competition. This study contributes to the theory on the development of SMMEs as they are seen as the key to the development of the local economy and the country at large. The findings emanating from this study will form a basis for future research on construction SMMEs in South Africa., M.Tech. (Construction Management)
- Contributor
- Aigbavboa, C.O., Prof., Thwala, W.D., Prof.
- Language
- English
- Rights
- University of Johannesburg
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