Original Research

Internal constraints to business performance in black-owned small to medium enterprises in the construction industry

Robert H. Mafundu, Chengedzai Mafini
The Southern African Journal of Entrepreneurship and Small Business Management | Vol 11, No 1 | a165 | DOI: https://doi.org/10.4102/sajesbm.v11i1.165 | © 2019 Robert H. Mafundu, Chengedzai Mafini | This work is licensed under Other
Submitted: 15 October 2017 | Published: 27 March 2019

About the author(s)

Robert H. Mafundu, Department of Logistics, Vaal University of Technology, Vanderbijlpark, South Africa
Chengedzai Mafini, Department of Logistics, Vaal University of Technology, Vanderbijlpark, South Africa


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Abstract

Background: There has been an upsurge of black-owned small to medium enterprises (SMEs) in the construction industry in South Africa. However, many of them continue to face various challenges, which adversely affect their business performance.

Aim: This article investigated the internal constraints influencing business performance in black-owned SMEs in the South African construction industry.

Setting: The study was conducted using a purposive sample of 13 professionals employed by five black-owned SMEs operating in the construction industry in Gauteng Province, South Africa.

Design, methodology and approach: A qualitative approach was followed involving semi-structured in-depth interviews with the selected participants. The collected data were analysed using content analysis.

Results: After the content analysis, five constraints to business performance emerged: occupational health and safety, human resources, leadership style, workplace communication and resource allocation.

Conclusion: The study offers insights on issues affecting the performance of black-owned SMEs in the construction industry in South Africa. Its findings facilitate the identification of the primary drivers of underperformance and are thus useful for the diagnosis of business performance challenges in SMEs operating in the construction industry.


Keywords

Small to medium enterprises; business performance; occupational health and safety; human resources; workplace communication; resource allocation

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