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Constraints and challenges faced by small, medium and micro enterprise contractors in Malawi

Small, medium and micro enterprises (SMMEs) are an important sector of any construction economy. The need for efficient SMMEs is well documented and cannot be over-emphasised. SMMEs are vital in their contribution to employment creation and value reorientation. However, their in process operations are not well understood and have rarely been addressed. The aim of this research was therefore to establish a base level of understanding of the operational core-face of SMMEs in Malawi. The methodology used included an extensive literature review and field survey conducted on 52 SMMEs. The field survey used the questionnaire instrument and random sampling. The critical findings from the literature were that there are binding constraints in the operations of SMMEs. The field survey confirmed the issues raised in the literature and posited the operational challenges as lack of finance, training and business skills; limited skills in Construction Information Technology (IT), and prevalence of unethical conduct amongst some of the stakeholders. The findings make an invaluable contribution to the search for solutions to the problems faced by construction SMMEs in Malawi and provide insight for further research in institutional weaknesses and policy issues regarding in this part of the world. The implications of the findings are that unless the limitations named above are resolved, SMMEs in Malawi will continue to experience poor growth and competitiveness. The recommendations include the developing of training programmes in business management, introduction of sector specific financing programmes and the provision of an appropriate regulatory and legislative framework. By establishing the core issues affecting the operations of SMMEs in the Malawian construction industry, the research has contributed to the enhancement of the understanding of this elusive subject.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9686
Date January 2010
CreatorsChilipunde, Rodrick Lengama
PublisherNelson Mandela Metropolitan University, Faculty of Engineering, the Built Environment and Information Technology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MSc
Formatxviii, 109 leaves, pdf
RightsNelson Mandela Metropolitan University

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