An exploratory study of problems facing small contractors in the North West province of South Africa

Abstract

The main objective of this study was to examine the problems that are facing small contractors in the North West Province of South Africa. In undertaking the study a comprehensive literature review was conducted and it was supplemented by primary data gathering. A questionnaire was sent to over 100 contractors in the North West Province and 57 questionnaires were returned. The major findings of the research were that the problems facing small contractors were the following; Government not paying on time, lack of capital and difficulty in arranging guarantees, lack of technical skills, lack of business management skills. The importance of small contractors in South Africa has been recognised by many researchers and policy makers. The contribution of small contractors to the creation of jobs and to the alleviation of poverty has been recognised by many Governments in the Developing Countries including the South African Government. The aim of the study was to examine the problems facing contractors in South Africa focusing on the North West Province. The study made recommendations for a success small contractor development programme.