How far in business performance are Gauteng construction SMMEs from applicable best practices?

Abstract

Small, Micro- and Medium Enterprises (SMMEs) play a significant role in most world economies, particularly in developing countries. South Africa’s SMMEs demonstrate a high failure rate and do not seem to match the performances of applicable best practices. Regarding construction SMMEs, these issues are particularly noticeable. This study wants to investigate the level of performance of SMMEs in the construction industry of the Gauteng Province in South Africa as compared to SADC and best practices by addressing the research question, “To what extent do Gauteng construction SMMEs deviate from global best practice and SADC measures in terms of performance metrics?”, using regional and global lenses. The study design was cross-sectional qualitative based on secondary data. The targeted study population consisted of registered Gauteng construction SMMEs, and SADC and global best practices benchmarks were used for measuring these performances. The study found the Gauteng construction SMMEs were not engaging in social responsibility, and were lacking the most in business results, policy and strategy, processes, and in people management.