Factors Influencing the Growth of Small and Medium Construction Firms in Northern Ghana

Abstract

ABSTRACT The construction industry is critical to economic development. Small and medium construction firms (SMCFs) play a key role in the process. The need for vibrant and efficient SMCFs cannot be overemphasized. This study sought to identify factors affecting the survival and growth of SMCFs in northern Ghana. The study adopted a qualitative approach involving face to face interview with SMCFs and construction consultants. Analysis was conducted using a triangulation of word auto-summary, manual summary and Nvivo 8. Key challenges included delay in payment, politics/corruption in the award of contracts, and difficulties in accessing credit. Strategies adopted by SMCFs to spur growth included establishing good relation with clients, low bids, affiliating with political parties and good quality of work. Training and adoption of appropriate regulatory framework would enhance the growth of SMCFs. The findings provide an insight for further research in other regions of Ghana, for comparison and subsequently generalization.