Abstract
The paper explores the problems facing Small and Medium Size Contractors in Swaziland. The construction sector in Swaziland is not only a significant source of direct employment but also a sector which contributes, through its wide range of projects and operations. The paper will also look at the current government initiatives that had been put in place to address the challenges and problems in order to ensure that contractors are successful. There is a high failure rate among small and medium size contractors in Swaziland. These contractors fail for a variety of reasons ranging from lack of adequate capacity to handle the uniqueness, complexity and risks in contracting, lack of effective management, lack of business management, poor record keeping and inadequate technical, financial and contract managerial skills. Drawing on research on small and medium size contractors, the paper used both secondary and primary litera-ture. 100 questionnaires were distributed to different role players in the construction sector in Swaziland. The response rate was eighty seven (87) percent. The paper reveals that the most problems facing small and medium size contractors in Swaziland is lack of access to finance and late payment by government. The paper closes with recommendations and key lessons for the future.
Highlights
In Swaziland and other countries there seem a general consensus that small enterprises are the mainstay of economic growth and prosperity
Small contractors can be powerful instruments of generating job opportunities; small contractors can perform small projects at different and remote geographical locations that might be unattractive to big firms or too costly using the big firms; low overheads enable small contractors to work at more competitive prices; large number of functional small and medium scale black contractors can help to decentralise the construction industry dominated by established large contractors; the relatively low skills and resources required at this scale can lower the entry point for the small and medium size owners to begin to participate in the industry; and a large number of functional Swazi owned contractors can develop a platform for growth and redistribution of wealth in Swaziland
Many construction firms have suffered financial ruin and bankruptcy because of delays in payment, which are common with government contracts
Summary
In Swaziland and other countries there seem a general consensus that small enterprises are the mainstay of economic growth and prosperity. Small contractors can be powerful instruments of generating job opportunities; small contractors can perform small projects at different and remote geographical locations that might be unattractive to big firms or too costly using the big firms; low overheads enable small contractors to work at more competitive prices; large number of functional small and medium scale black contractors can help to decentralise the construction industry dominated by established large contractors; the relatively low skills and resources required at this scale can lower the entry point for the small and medium size owners to begin to participate in the industry; and a large number of functional Swazi owned contractors can develop a platform for growth and redistribution of wealth in Swaziland. At a time when the public sector and big business are shedding jobs, small businesses are maintaining real employment growth. The small contractor development programme falls under the Ministry of Public Works and Transport. The main mandate of the ministry is to ensure the provision and maintenance of a sustainable public infrastructure, an efficient and effective seamless transport system and network, regulation for a vibrant construction and transport industry, management of public service accommodation and the provision of meteorological services [1]
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