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n Journal of Emerging Trends in Economics and Management Sciences - Comparative study of problems facing small building contractors in Nigeria and South Africa

Volume 7, Issue 2
  • ISSN : 2141-7024
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Abstract

The construction industry world over faces challenges and problems of all kind and that there is a perception that the industry is lagging behind in terms of technological advancement, development of operational processes and keeping up to date with prevailing business trends. In the Nigerian construction industry, small sized contractors have become a player perceived as the key to Nigeria's economic growth, poverty alleviation and employment generation. Recent studies showed that some of these small contractors encounter problems which make them go out of business. This study aims at comparing the problems facing small building contractors in Nigeria and South Africa and also evaluates the ways of reducing the challenges faced by small building contractors. A structured questionnaire was used as the research instrument for collecting data from respondents. The target respondents were construction professionals and top personnel working in small contracting firms in Lagos. Convenience sampling method was used to draw up sample from the population. Out of the 121 copies of research questionnaire distributed, 48 were completed and returned representing a 40% response rate. The returned copies were scrutinized for errors, omissions, completeness and inconsistencies. Forty four questionnaires were found to be adequately completed. Frequency, percentage and mean score were used in analysing data collected for the study. The study showed that small sized contractors in Nigeria are common sight in the Nigerian construction industry and are regarded as relatively underdeveloped, especially when compared to their foreign counterpart. The major problem of small building contractors is the lack of access to finance and the high interest rate. The study recommends that the government should play a key role by addressing the issue of access to finance with reduced interest rate and ridiculous collateral requirement so they can compete with their foreign counterparts. Small building contractors are expected take into considerations the significant problems highlighted in the study in order to be guided to making decisions that will rob on positively to the long term objectives of small building firms.

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/content/sl_jetems/7/2/EJC190048
2016-04-01
2019-09-15

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