The sustainability of construction small-medium enterprises (SMEs) in South Africa

Moloi, Nosipho
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Small, Medium Enterprise (SMEs), are extensively interrelated with the economic development of national economies. Globally SMEs are substantial contributors to Gross Domestic Product the goods and services produced within the boundaries of a country. They are also considerable employment creators; this in turn reduces poverty and improves the standards of living, and in African countries SMEs endorse economic growth and development significantly. SMEs belong to different industries and that each industry has its own challenges. Moreover firms or organisation are established in order to generate income according to the industries’ value systems; hence there are a number of factors, both internal and external, that influence the survival or pose obstacles to the survival of an organization. The present study has been undertaken in order to identify the sustainable factors relating to construction SMEs in South Africa. The literature review identifies the factors for or barriers facing sustainable SMEs and these factors are organised as internal and external. Structured interviews are used as a tool for the study on focus groups purposely chosen to see if internal and or/ external environmental factors cause failure or success of construction SMEs in South Africa. Data are subject to descriptive analysis. Focus groups gave valuable information to the phenomena; it was discovered that organisations have to concentrate on the benefits of the internal environment by applying business processes, whereas the external environment will be continually be influential to organisations so they must learn to persistently adapt in response to its changes