Effectiveness of the funding model for construction companies in the Free State

Abstract

This research delves into the nuanced realm of funding models within the construction industry,particularly focusing on their efficacy for struggling construction businesses in the Free StateProvince of South Africa. The primary objective is to critically evaluate the responsiveness offinancial institutions to funding requests from contractors and to delve into the intricacies ofthe funding process. Through a qualitative approach, the study aims to explore the diverserange of funding models that are currently employed by contractors, shedding light on boththeir strengths and limitations. Furthermore, the research endeavours to identify and analysethe various challenges that are associated with existing funding structures and offers, providingvaluable insights into potential areas for improvement. Additionally, by examining thepotential synergies between adequate funding and developmental programmes, this study seeksto ascertain their collective impact on the growth trajectory of contractors within the region.By conducting semi-structured interviews with registered construction contractors who faceindustry absorption challenges, this research aims to uncover rich qualitative data that canprovide a comprehensive understanding of the complexities that are inherent in the Small andMedium Enterprises (SME) contractor industry. Ultimately, the findings of this study areexpected to contribute to the enhancement of funding mechanisms and support systems thatare tailored to the unique needs of SME contractors; thereby fostering their sustainable growthand development.