Abstract
The construction industry in South Africa plays a major role in the country’s GDP. It plays a significant role in the ability to boost growth for the country and create temporary and long term employment for many individuals.
With the high number of emerging construction companies failing to succeed within the first 3 years after being established, there is an increasing risk of having a high unemployment rate in the country. The study focuses on factors which contribute to emerging construction companies failing to succeed and how successful companies are able to overcome failure in the same industry.
Through literature 8 factors were identified as being the factors which contribute to failure for emerging construction companies. Questionnaires distributed via an online survey where used to collect data from individuals who own companies with Construction Industry Development Board(CIDB) grade 1 - 4 or individuals who are in management positions in companies with grade 5 - 9.
From the results it was found that poor managing of company finances by leadership is the biggest reason emerging construction companies fail to sustain. It was found that established companies manage the 8 factors identified from literature better compared to emerging companies and thereby are able to overcome failure.
The study has contributed to the limited knowledge available to the construction industry about why emerging construction companies fail to succeed by identifying the causes and what to do to avoid failure.
M.Phil. (Engineering Management)