Incubator program development: A case study of small construction companies in Gauteng

Dane Govender, Arnesh Telukdarie

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Small construction companies in Gauteng, South Africa, have experienced many obstacles in attempting to successfully complete construction projects. The general failure rate of construction companies, in South Africa, is historically high. The study focuses on investigating reasons as to why construction companies fail in South Africa. Literature indicates that contractors experience significant challenges including financial, managerial and political barriers. Research indicates the lack of development of Small, Medium and Micro sized Enterprises (SMME's) have been viewed as being globally problematical. The study identifies existing, relevant global literature reporting on problems relating to the lack of contractor development and construction project failure. This research further investigates local and international best practices for contractors that have resulted in the success of construction companies. The researcher conducted an analysis of the construction industry focusing on a group of contractors involved in a South African contactor development program. The contractors participated in one-on-one interviews, as well as the completion of a detailed questionnaire. All participants involved are part of the First National Bank (FNB) Incubator program. The questionnaire focuses on establishing the financial status, management skills, appropriate staffing, and assessment of technical and contractual skills. The data analysis benefits the construction industry in providing insight into the contractor's deficiencies and challenges. The results indicates that the failure of many small construction companies is been due to a multitude of factors including factors working in combination. Furthermore, the research focuses on revealing key factors resulting in the collapse of construction companies as well as how these factors should be addressed, with the aim of providing a solution to the lack of contractor development and the failure of construction companies. The study compares best practices, for contractors globally, together with details as to potential implementation strategies. The development of contractors is vital to the South African economy. The inability of government and the contractors themselves to address key factors has resulted in contractors struggling to develop or sustain business long term plans. These plans need to be successfully created and implemented, if there is to be a change in current circumstances.

Original languageEnglish
Title of host publication26th International Association for Management of Technology Conference, IAMOT 2017
PublisherInternational Association for Management of Technology Conference (IAMOT) and the Graduate School of Technology Management, University of Pretoria
Pages1310-1328
Number of pages19
ISBN (Electronic)9783200049864
Publication statusPublished - 2020
Event26th International Association for Management of Technology Conference, IAMOT 2017 - Vienna, Austria
Duration: 14 May 201718 May 2017

Publication series

Name26th International Association for Management of Technology Conference, IAMOT 2017

Conference

Conference26th International Association for Management of Technology Conference, IAMOT 2017
Country/TerritoryAustria
CityVienna
Period14/05/1718/05/17

Keywords

  • Benchmarking
  • Employment creation
  • Financing
  • Skills development
  • Strategies alignment

ASJC Scopus subject areas

  • Management of Technology and Innovation

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