An investigation of the challenges faced by the small and medium enterprise contractors in the construction industry of Windhoek

This study investigated the challenges faced by small and medium-sized enterprises (SMEs) contractors in the construction industry of Windhoek. The study seeks to establish the challenges that SMEs are faced with on a daily basis. A quantitative method was used to obtain data from the owners of SMEs and the Site Foreman, utilising the survey design, which suggests the collection and analysis of quantitative data. The study revealed that SMEs in Windhoek are challenged by internal and external factors that mostly emanate from financial problems caused by limited access to finance, delayed payments from clients, and high competition that leads to low profit margins, low profit margins, and high cost of material, tools, labour, and machinery. The factors mentioned were the key factors that hindered the operations of SMEs in the construction industry in Windhoek. SMEs survived by advancing business strategies such as joint venture partnerships, acquisitions, subcontracting, and vertical integration, obtaining tenders, being able to provide mandatory documents required by clients, and lowering tender prices in order to increase the likelihood of obtaining tenders. It is therefore recommended that the government must introduce financial and contract conditions training and the financial assistance given to SME contractors must be different from current commercial bank conditions. Clients must pay SME on time. Furthermore, further studies can be conducted to find out the best strategies that can be implemented to ensure the growth and survival of SMEs despite the challenges they face.

Grantor dc:publisher

University of Namibia

Year dc:date.issued

2022

Author dc:creator

• Thomas, Katrina

• Challenges
• SMEs
• Construction

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/11070/3289

OAI identifier oai:identifier

oai:repository.unam.edu.na:11070/3289