The South African consulting engineering industry faces a challenge of relevance, particularly in the wake of government infrastructure investment through the planned National Development Plan and other current infrastructure plans. This challenge is even more so for small consulting engineering businesses within the industry who experienced a decline in earnings by ten percent in the first six months of 2013 as compared to the last six months of 2012 (Consulting Engineers South Africa, 2013:38). Government, as a job creator, has a duty to ensure that the conditions that these businesses operate in are favourable to them in order for the businesses to remain sustainable. Factors that contribute to the sustainability of small consulting engineering businesses need to be identified. Amathole District Municipality (ADM) situated in the Eastern Cape Province and which is the second largest province in South Africa but the second poorest (Eastern Cape Socio Economic Council (ECSECC), 2011:15 cited in Mtshibe, 2013:1) is one of those job creators. According to the Amathole District Municipality (ADM) (2013:38), the district, which comprises of seven local municipalities, is the 3rd largest economy in the province after the Nelson Mandela Bay Metropolitan Municipality and Buffalo City Metropolitan Municipality, contributing twelve percent to the provincial economy. Figures published in the Division of Revenue Bill, 2014 (RSA, 2014:236) indicate infrastructure development allocations totalling R1.34 billion budgeted to the ADM for the next three years. This translates to job opportunities for the consulting engineering industry of this region. However, the latest ADM SMME procurement data reveals that in the past five years, only a small percentage of tenders awarded were to small consulting engineering businesses with a majority going to medium to large well-established enterprises (ADM, 2014). These results pose a serious challenge for policy makers who have a duty to ensure that work opportunities do not disadvantage emerging small businesses. The main objective of this study was to gain an understanding of the antecedents that impact on the sustainability of small consulting engineering businesses within the Amathole District Municipality. This was done by identifying antecedents to sustainability of small consulting engineering businesses through a detailed literature review. This literature review identified the competitive environment, regulatory environment and policy environment (independent variables) as being antecedents to sustainability of small consulting engineering businesses (dependant variable). In testing the above research objective, the researcher used statistical analysis methods to reach a conclusion with regard to these antecedents. The positivistic research paradigm (quantitative method) was selected in testing this research objective through the use of hypothesis testing. Data was collected using self-administered questionnaires distributed to 100 small consulting engineering businesses using the databases of both the Amathole District Municipality and Consulting Engineers South Africa (CESA). Out of the selected sample of 100 small consulting engineering businesses, only 81 responses were received, thus representing an eighty-one percent response rate which is considered adequate. The collected data was then analysed using inferential and confirmatory statistical analysis methods. The analysis was presented in the form of graphs and tables. The results of the empirical survey identified rival competitor influence, the competitive environment and policy environment as being antecedents to sustainability of small consulting engineering businesses within the Amathole District Municipality. Based on these findings, recommendations were made to the management of the Amathole District Municipality in an endeavour to make the environment within which small consulting engineering businesses operate more favourable for the businesses to be sustainable. Suggestions for future research were also made as a way to help in addressing some of the challenges that are faced by the engineering industry.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20819 |
| Date | January 2014 |
| Creators | Silinga, Nyaniso Sandisiwe |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 166 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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