Factors contributing to the failure of emerging construction companies in South Africa

Benito Novela; Annlizé Marnewick; Hannelie Nel

Factors contributing to the failure of emerging construction companies in South Africa

Benito Novela
, Annlizé Marnewick
, Hannelie Nel

Postgraduate School of Engineering Management

University of Johannesburg

Research output: Contribution to journal › Conference article › peer-review

Abstract

A high number of emerging construction companies in South Africa close down within the first three years of establishment. The construction industry plays a major role in the country's gross domestic product and closure of companies contribute to the increasing risk of high unemployment rate in South Africa. A comprehensive literature review identified eight factors which contribute to failure of emerging construction companies. Primary data was collected via a questionnaire which was distributed to owners and managers of emerging construction companies. The study reveals that a lack of financial management by leadership is the most prominent factor that leads to failure or success of companies.

Original language	English
Pages (from-to)	381-387
Number of pages	7
Journal	Proceedings of the International Conference on Industrial Engineering and Operations Management
Volume	2018
Issue number	NOV
Publication status	Published - 2018
Event	Proceedings of the International Conference on Industrial Engineering and Operations Management Pretoria, IEOM 2018 - Duration: 29 Oct 2018 → 1 Nov 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty

Keywords

Construction
Emerging companies
Financial management

ASJC Scopus subject areas

Strategy and Management
Management Science and Operations Research
Control and Systems Engineering
Industrial and Manufacturing Engineering

Cite this

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title = "Factors contributing to the failure of emerging construction companies in South Africa",

abstract = "A high number of emerging construction companies in South Africa close down within the first three years of establishment. The construction industry plays a major role in the country's gross domestic product and closure of companies contribute to the increasing risk of high unemployment rate in South Africa. A comprehensive literature review identified eight factors which contribute to failure of emerging construction companies. Primary data was collected via a questionnaire which was distributed to owners and managers of emerging construction companies. The study reveals that a lack of financial management by leadership is the most prominent factor that leads to failure or success of companies.",

keywords = "Construction, Emerging companies, Financial management",

author = "Benito Novela and Annliz{\'e} Marnewick and Hannelie Nel",

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year = "2018",

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T1 - Factors contributing to the failure of emerging construction companies in South Africa

AU - Novela, Benito

AU - Marnewick, Annlizé

AU - Nel, Hannelie

N1 - Publisher Copyright: © IEOM Society International.

PY - 2018

Y1 - 2018

N2 - A high number of emerging construction companies in South Africa close down within the first three years of establishment. The construction industry plays a major role in the country's gross domestic product and closure of companies contribute to the increasing risk of high unemployment rate in South Africa. A comprehensive literature review identified eight factors which contribute to failure of emerging construction companies. Primary data was collected via a questionnaire which was distributed to owners and managers of emerging construction companies. The study reveals that a lack of financial management by leadership is the most prominent factor that leads to failure or success of companies.

AB - A high number of emerging construction companies in South Africa close down within the first three years of establishment. The construction industry plays a major role in the country's gross domestic product and closure of companies contribute to the increasing risk of high unemployment rate in South Africa. A comprehensive literature review identified eight factors which contribute to failure of emerging construction companies. Primary data was collected via a questionnaire which was distributed to owners and managers of emerging construction companies. The study reveals that a lack of financial management by leadership is the most prominent factor that leads to failure or success of companies.

KW - Construction

KW - Emerging companies

KW - Financial management

UR - https://www.scopus.com/pages/publications/85067204646

M3 - Conference article

AN - SCOPUS:85067204646

SN - 2169-8767

VL - 2018

SP - 381

EP - 387

JO - Proceedings of the International Conference on Industrial Engineering and Operations Management

JF - Proceedings of the International Conference on Industrial Engineering and Operations Management

IS - NOV

T2 - Proceedings of the International Conference on Industrial Engineering and Operations Management Pretoria, IEOM 2018

Y2 - 29 October 2018 through 1 November 2018

ER -

Factors contributing to the failure of emerging construction companies in South Africa

Abstract

UN SDGs

Keywords

ASJC Scopus subject areas

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