Problems Facing Small and Medium Size Contractors in Swaziland
- 1
- 2
Abstract
The paper explores the problems facing Small and Medium Size Contractors in Swaziland. The construction sector in Swaziland is not only a significant source of direct employment but also a sector which contributes, through its wide range of projects and operations. The paper will also look at the current government initiatives that had been put in place to address the challenges and problems in order to ensure that contractors are successful. There is a high failure rate among small and medium size contractors in Swaziland. These contractors fail for a variety of reasons ranging from lack of adequate capacity to handle the uniqueness, complexity and risks in contracting, lack of effective management, lack of business management, poor record keeping and inadequate technical, financial and contract managerial skills. Drawing on research on small and medium size contractors, the paper used both secondary and primary litera-ture. 100 questionnaires were distributed to different role players in the construction sector in Swaziland. The response rate was eighty seven (87) percent. The paper reveals that the most problems facing small and medium size contractors in Swaziland is lack of access to finance and late payment by government. The paper closes with recommendations and key lessons for the future.
- Ministry of Public Works and Roads, “Swaziland. Swaziland today,” 2007, http://www.gov.sz.
- Construction Industry Development Board, “South Africa construction industry status report – Synthesis review on the South African construction industry and its development. Discussion document,” South Africa, 2004.
- National Advisory Council on Innovation, “The potential impact of skills shortages on the innovative capacity of major capital engineering projects,” National Advisory Council on Innovation and Department of Science and Technology, Pretoria, 2003.
- Construction Industry Development Board, Department of Public Works, Construction Education and Training Authority, “Towards a common framework for enterprise growth and sustainability,” Sustainable contractor development, National Workshop, Pretoria, 2005.
- A. Kesper, “Failing or not aiming to grow? Manufacturing SMMEs and their contribution to employment growth in South Africa,” TIPS Working Paper 15, 2000.
- D. Matas, “Towards the new millennium series: No more: The battle against human rights,” Ottawa, Dundurn Press, 1996.
- Statistics South Africa, “Labour force survey for septem-ber 2005,” Statistics South Africa, Pretoria, 2005.
- M. K. Nissanke, “Financing enterprise development in sub-Saharan Africa,” Cambridge Journal of Economics, Vol. 25, pp. 343–367, 2001.
- C. M. Rogerson, “Unpacking tourism SMMEs in South Africa: Structure, support needs and policy response,” Development Southern Africa, Vol. 22, pp. 623–642, 2005.