The sustainability of South African construction small, medium and micro enterprises
- Authors: Anugwo, Iruka Chijindu
- Date: 2017
- Subjects: Construction industry -- South Africa -- Port Elizabeth Sustainable development -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/15259 , vital:28194
- Description: The construction industry is one of the strategic sectors that drive the economic sustainability and competitiveness of any nation. However, the chronic business failure amongst the start-ups and Small, Medium and Micro Enterprises (SMMEs) in the construction industry globally is of great concern to economic prosperity for both developed and developing countries. This challenge is significantly high in the South African construction industry, where SMMEs account for 95% of the business entities, of which about 80% are most likely to exit from the market within their first five years of operation. Previous studies in this field centred on the factors that lead to construction-business failure. However, the actual operational elements of surviving SMMEs have rarely been addressed and are little understood. Thus, this research aimed to explore the strategic drivers that offer significant solutions to the challenges facing start-up contractors in the South African construction industry. The review of the related literature revealed the strategic drivers and business survival characteristics that foster SMME economic sustainability and competitiveness in the construction market. The qualitative research approach that is rooted in the phenomenological paradigm was adopted for this study. Port Elizabeth, located in the Eastern Cape Province of South Africa was the selected geographical scope for this research. Thirty-four (34) construction organisations were purposively selected from the Port Elizabeth construction industry development board (cidb) register of contractors in grades 4-6. The purposive sampling technique was adopted in selecting respondents based on the snowball approach. The research data were collected through in-depth interviewing. It was found that the SMME contractors who succeeded in their first 5 years of operation possessed the following qualities: “fundamental educational qualifications”; “experience and knowledge of construction works”; “a clear understanding of competitive business strategies and characteristics”; “critical skills and multi-skills (functional project teams)”; and “rely on strategic resources, competencies and capabilities”. Also, the significant factors contributing to the SMME contractors’ competitiveness were: “entrepreneurship skills”; “innovation and technological skills”; “leadership skills”; “education, skills training, and investment in Research and Development (R&D)”; as well as “strategic-alliance advantage”. Moreover, globalisation and internationalisation, and government support have significant potential to impact on the success and sustainability of SMME contractors. Unfortunately, these factors are under-utilised or un-strategically adopted by most of the South African SMME contractors. The research has also developed a conceptual model for sustainable performance of SMMEs based on the results and informed by the theoretical framework. The research has also developed a business-survival strategy and model for SMME contractors in the South African construction industry. The study has achieved its aim of identifying the strategic business practices, models and concepts that the surviving and active SMME contractors employed to thrive within and beyond the first five years in the industry. Based on these findings, the study recommends that the start-ups and SMME contractors should gain an insightful and strategic business knowledge on how to develop and grow a competitive and economically sustainable organisation in the industry. This should form part of their competitive business strategic models, their business review plans; and set the benchmark for performance evaluation.
- Full Text:
- Date Issued: 2017
- Authors: Anugwo, Iruka Chijindu
- Date: 2017
- Subjects: Construction industry -- South Africa -- Port Elizabeth Sustainable development -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/15259 , vital:28194
- Description: The construction industry is one of the strategic sectors that drive the economic sustainability and competitiveness of any nation. However, the chronic business failure amongst the start-ups and Small, Medium and Micro Enterprises (SMMEs) in the construction industry globally is of great concern to economic prosperity for both developed and developing countries. This challenge is significantly high in the South African construction industry, where SMMEs account for 95% of the business entities, of which about 80% are most likely to exit from the market within their first five years of operation. Previous studies in this field centred on the factors that lead to construction-business failure. However, the actual operational elements of surviving SMMEs have rarely been addressed and are little understood. Thus, this research aimed to explore the strategic drivers that offer significant solutions to the challenges facing start-up contractors in the South African construction industry. The review of the related literature revealed the strategic drivers and business survival characteristics that foster SMME economic sustainability and competitiveness in the construction market. The qualitative research approach that is rooted in the phenomenological paradigm was adopted for this study. Port Elizabeth, located in the Eastern Cape Province of South Africa was the selected geographical scope for this research. Thirty-four (34) construction organisations were purposively selected from the Port Elizabeth construction industry development board (cidb) register of contractors in grades 4-6. The purposive sampling technique was adopted in selecting respondents based on the snowball approach. The research data were collected through in-depth interviewing. It was found that the SMME contractors who succeeded in their first 5 years of operation possessed the following qualities: “fundamental educational qualifications”; “experience and knowledge of construction works”; “a clear understanding of competitive business strategies and characteristics”; “critical skills and multi-skills (functional project teams)”; and “rely on strategic resources, competencies and capabilities”. Also, the significant factors contributing to the SMME contractors’ competitiveness were: “entrepreneurship skills”; “innovation and technological skills”; “leadership skills”; “education, skills training, and investment in Research and Development (R&D)”; as well as “strategic-alliance advantage”. Moreover, globalisation and internationalisation, and government support have significant potential to impact on the success and sustainability of SMME contractors. Unfortunately, these factors are under-utilised or un-strategically adopted by most of the South African SMME contractors. The research has also developed a conceptual model for sustainable performance of SMMEs based on the results and informed by the theoretical framework. The research has also developed a business-survival strategy and model for SMME contractors in the South African construction industry. The study has achieved its aim of identifying the strategic business practices, models and concepts that the surviving and active SMME contractors employed to thrive within and beyond the first five years in the industry. Based on these findings, the study recommends that the start-ups and SMME contractors should gain an insightful and strategic business knowledge on how to develop and grow a competitive and economically sustainable organisation in the industry. This should form part of their competitive business strategic models, their business review plans; and set the benchmark for performance evaluation.
- Full Text:
- Date Issued: 2017
Evaluating the training and supply of artisans in the South African construction industry
- Authors: Anugwo, Iruka Chijindu
- Date: 2013
- Subjects: Skilled labor -- South Africa , Skilled labor -- Training -- South Africa , Artisans -- South Africa , Construction industry -- Employees --Training of -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9672 , http://hdl.handle.net/10948/d1020042
- Description: The study focused on identifying ways in which to improve and increase the quality of training and supply of skilled artisans in the South African construction industry (especially in Gauteng Province) in terms of short and medium term approach. The construction industry is facing a severe skills crisis and this has made it so difficult to recruit competent artisans. This may be as a result of artisans being regarded as the lowest in the hierarchy of construction worker positions. In addition, these artisans warrant less training than those at executive- and managerial levels. This negative attitude towards artisans training has plunged the industry into crisis. Those involved find it difficult to successfully complete projects on time, within budgeted project costs and within the required quality specification due to lack of competent artisans. However, serious attention is required towards enhancing artisan training in the industry. It is imperative and vital to ensure the survival of the industry. The cardinal aim of this research project was to demonstrate a guiding solution towards the skills crisis. Thus, in order to initiate a tremendous change in the skills profile, certain measures are required, e.g. expanding training institutions to local regions; upgrading and aligning facilities in the training institutions to industrial demands and the dissemination of vital information that will ensure the attractiveness of the industry. This will safeguard the construction organisations operating in Gauteng Province. Although the industry is a major player in the economy, there is need for special attention in order to ensure sustainable growth and economic development. The Government, construction industry stakeholders and training institutions personnel should collaborate to salvage the skills crisis by strategically developing programmes (in accordance with industrial requirements) that will benefit prospective learners. The researcher adopted the descriptive- and analytical survey method, which entailed the use of questionnaires and a review of the related literature for gathering relevant data. The methodology used in the research was the quantitative data analysis. The feature findings of the research concluded that the skilled artisans profile is insufficient to meet industry demands. In addition, training institutions and primary- and secondary educational systems are characterized by ninadequacy and incompetency to produce skilled artisans. The situation is exacerbated by the lack of harmonization between the training institutions and the vindustry’s requirements. Furthermore, the majority of the respondents acknowledged that training of their workers is an important aspect to them, but few of these organisations indicated that they make use of formal training institutions such as FET colleges. The recommendation include that all the stakeholders in the construction industry should form collaborations to strategically develop programmes that would upgrade the existing training institutions. This could be done through provision of adequate funds and resources and the dissemination of vital information that is capable to promote the attractiveness of the industry image.
- Full Text:
- Date Issued: 2013
- Authors: Anugwo, Iruka Chijindu
- Date: 2013
- Subjects: Skilled labor -- South Africa , Skilled labor -- Training -- South Africa , Artisans -- South Africa , Construction industry -- Employees --Training of -- South Africa
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9672 , http://hdl.handle.net/10948/d1020042
- Description: The study focused on identifying ways in which to improve and increase the quality of training and supply of skilled artisans in the South African construction industry (especially in Gauteng Province) in terms of short and medium term approach. The construction industry is facing a severe skills crisis and this has made it so difficult to recruit competent artisans. This may be as a result of artisans being regarded as the lowest in the hierarchy of construction worker positions. In addition, these artisans warrant less training than those at executive- and managerial levels. This negative attitude towards artisans training has plunged the industry into crisis. Those involved find it difficult to successfully complete projects on time, within budgeted project costs and within the required quality specification due to lack of competent artisans. However, serious attention is required towards enhancing artisan training in the industry. It is imperative and vital to ensure the survival of the industry. The cardinal aim of this research project was to demonstrate a guiding solution towards the skills crisis. Thus, in order to initiate a tremendous change in the skills profile, certain measures are required, e.g. expanding training institutions to local regions; upgrading and aligning facilities in the training institutions to industrial demands and the dissemination of vital information that will ensure the attractiveness of the industry. This will safeguard the construction organisations operating in Gauteng Province. Although the industry is a major player in the economy, there is need for special attention in order to ensure sustainable growth and economic development. The Government, construction industry stakeholders and training institutions personnel should collaborate to salvage the skills crisis by strategically developing programmes (in accordance with industrial requirements) that will benefit prospective learners. The researcher adopted the descriptive- and analytical survey method, which entailed the use of questionnaires and a review of the related literature for gathering relevant data. The methodology used in the research was the quantitative data analysis. The feature findings of the research concluded that the skilled artisans profile is insufficient to meet industry demands. In addition, training institutions and primary- and secondary educational systems are characterized by ninadequacy and incompetency to produce skilled artisans. The situation is exacerbated by the lack of harmonization between the training institutions and the vindustry’s requirements. Furthermore, the majority of the respondents acknowledged that training of their workers is an important aspect to them, but few of these organisations indicated that they make use of formal training institutions such as FET colleges. The recommendation include that all the stakeholders in the construction industry should form collaborations to strategically develop programmes that would upgrade the existing training institutions. This could be done through provision of adequate funds and resources and the dissemination of vital information that is capable to promote the attractiveness of the industry image.
- Full Text:
- Date Issued: 2013
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