Support for small enterprises in the construction sector : Coega development corporation contractor development programme

Thesis (MBA)--Stellenbosch University, 2015.

ENGLISH ABSTRACT: South Africa’s construction industry plays a key role in the development of the economy, not least through creating jobs and wealth. However, currently the distribution of economic benefits being enjoyed by construction companies is highly skewed, with a very small number of large firms being awarded a big stake of public-sector tender awards. It is against this background that government departments and institutions, including the Coega Development Corporation, have developed and implemented SMME-development programmes. They recognise the development of emerging contractors as an engine to alleviate unemployment and poverty in our country, especially among the youth. It can also be seen as a tool to spread the wealth of the construction industry more widely. These efforts resulted in a sharp influx of emerging contractors on the entry-level grades of the Construction Industry Development Board’s database. The study analyses the current situation of SMMEs in the construction industry and the challenges hindering their growth and development. Although the study focuses on the Coega Development Corporation’s SMME-Development Programme as implemented by the CDC’s Small Business Unit, the lessons from the sample survey and programme analysis are meant to have broader relevance. This relates in particular to the need to encourage and help dynamic and well-managed SMMEs to advance faster on the road towards highergrade contracts. It also stresses the need to get closer co-operation between the different players in efforts to support small-construction entrepreneurs.