Obstacles to SME Growth in the South African Civil Engineering Industry
Date
2014-01-14
Authors
Msipa, Vuyiso
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Abstract
Numerous studies have found that small and medium enterprises (SMEs)
significantly contribute to reducing unemployment worldwide. South Africa is
facing high unemployment levels and the promotion of SMEs’ growth would
assist the government’s objective to reduce unemployment. This study focused
on understanding the perceptual internal factors that inhibit SMEs’ growth and
their order of importance, in the South African civil engineering industry. Data
was collected through self-administered questionnaires sent to randomly
selected SMEs around the country. Six key factors (theoretical factors) and their
order of importance were identified in the literature and confirmatory factor
analysis was conducted which did not confirm a structural fit with the results
from the respondents in this study. Exploratory factor analysis identified five
factors (empirical factors), four of which were similar to the theoretical factors.
The order of importance of empirical factors was found not to be similar to that
of theoretical factors. The study found that the most important factors in the
order of their importance were: lack of network and marketing; cost of
production; skills shortage; internal financial problems; quality of utilities; and
telecommunications. The age of the firm was found to affect the order of factors.
Description
MBA thesis
Keywords
Small and micro enterprises, Civil engineering