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

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.