Strategies to adress challenges faced by SMMEs in the construction industry of the Omusati Region, Namibia.
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Date
2018
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Abstract
The success of all sizes of business is attributed to effective strategies, as they provide directions and lead the business to become sustainable. Successful businesses employ various strategies to gain business opportunity in an aggressive competitive environment. The main aim of this study was to identify and recommend strategies that address challenges faced by SMMEs in the construction industry of the Omusati Region. Statistics show that SMMEs can effectively transform economies. For example, SMMEs in the construction industry contributes immensely towards job creation, skills development and poverty eradication because they also cater for unskilled labour which addresses employment at grassroots. Despite the capabilities of SMMEs in the society, majorities of SMMEs closure has been observed compared to expansions. However, SMMEs have potential to succeed if appropriate strategies are enforced and implemented. Therefore, enterprises that develop and implement strategies usually outperform those conducting business traditionally.
The literature on the topic was reviewed to unpack different views of researchers on SMMEs challenges, strategies and theories associated with the study. A quantitative research approach was used to collect descriptive data. Fifty-six (n=56) respondents participated in the study in their capacity as owners or managers of selected SMMEs in the construction industry. Primary data was collected from respondents using questionnaires which was hand delivered and collected upon completion. Collected data were entered into the computer software called Statistical Package for Social Science (SPSS 25) and later analyzed using descriptive and inferential statistics. The study confirms that SMMEs are faced with many challenges that limit their full potential. The findings reveal that business strategies can also be applied to Small, Micro and Medium Enterprises just like with large enterprises. In conclusion, this study recommended that SMMEs should develop and implement business strategies (develop and implement a business plan, focus on the differentiation strategies, enhance the use of Information Communication and Technology, develop and implement marketing strategies and develop and implement financial plans) that would help SMMEs to address the challenges they are facing in the construction industry of the Omusati Region.
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Masters Degree. University of KwaZulu-Natal, Durban.