- Title
- The sustainability of emerging black construction companies: potential threats
- Creator
- Pietersen, Nolitha
- Subject
- South Africa -- Construction Industry Development Board
- Subject
- Construction contracts -- South Africa Sustainable development -- South Africa Business enterprises, Black -- South Africa Blacks -- South Africa -- Economic conditions
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/22979
- Identifier
- vital:30260
- Description
- Construction plays an important role in South Africa’s socio-economic development. The Construction Industry Development Board (CIDB) was therefore developed in terms of the CIDB Act 38 0f 2000 and its reason for establishment is to lead the construction industry stakeholders in construction development. Some of the responsibilities of the CIDB is to ensure that there is skills development and transformation in the industry. On the delivery of infrastructure assets for the benefit of the ordinary citizens of South Africa, there are frequent challenges that contractors tend to experience. Such challenges include a wide range of compliance protocols such as tax compliance issues. The limited knowledge of taxation often result in understatement of income culminating in taxation audits and ultimately significant penalties and unexpected taxation liabilities. Other critical areas include successful project management of projects including proper costing and scheduling of project activities. The extent of this problem is evident in the number of terminations of contracts of such service providers, where some of them have even been blacklisted on the National Treasury Database of restricted service providers prohibiting them from doing any business with government for a stipulated period. The primary objective of the study was to investigate the factors that contribute to threatening the sustainability of black owned emerging construction companies. In order to gain an understanding of the problems that contractors face that pose a threat to their sustainability, questionnaires will be distributed to contractors and reviews by interview will be conducted. A qualitative study was therefore conducted. The relationships between the skills set of the contractors, the type of work they have for example, government and/or private sector work, methods of funding projects, periods of receiving payments, SARS compliance requirements and how these factors interrelate with each other was investigated. The causal effect/relationship of each of these on the sustainability of the contractors was determined. This study involves a case study approach and a qualitative research design. A multiple-case study method was selected to broaden the understanding of the phenomenon under of the study. The two black-owned construction companies used as the subjects for this study were selected on the basis that they would enable this research to determine what factors play a role and what threats are to their sustainability, in spite of the government support programs. The interpretivism approach was used as a means of describing what factors posed threats to the sustainability of emerging black construction companies. The aim of this study was not to test any hypothesis but to rather explore and gain an in-depth understanding of the construction industry, the role of the government and to understand what factors affect the emerging black construction companies to a point of point threats to their sustainability. The results of this study indicate that a wide range of challenges tend to hamper development and progress of emerging construction companies. Some of these challenges include poor employee retention strategies where very little emphasis is placed on the value of people. Workplace training through formal learnership or artisan programs are non-existent and a formalised role is required in this regard. Performance management is hardly measured or monitored in the business which has a direct impact on prospective growth. Cash flow is a critical challenge in the business and the study finds that financial management administrative skills are lacking. Financial management administration is linked to cash flow management and cash flow projections. The study also contributes to emerging theories such as business planning in relation to sustainable growth and innovation of SMEs.
- Format
- viii, 120 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
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