Challenges faced by small, medium and micro enterprises in civil engineering projects at selected construction sites in the Free State

Ethics reference: 2022_FBMSREC 046

Abstract: Small, Medium, and Micro Enterprises (SMMEs) play a pivotal role in driving economic growth and fostering development globally, as well as in the specific context of South Africa. This importance is particularly evident in the civil, building, and mechanical engineering industries, where SMMEs contribute significantly to the country's Gross Domestic Product (GDP) and hold the potential to alleviate poverty, reduce unemployment, and promote inclusivity and fairness. This dataset explores the multifaceted significance of SMMEs in these industries.

Globally, SMMEs are recognized as engines of economic growth due to their capacity to innovate, create jobs, and generate income. In South Africa, these enterprises have a profound impact on the economy, contributing poverty alleviation and income generation social inclusion. SMMEs involvement in the civil engineering, building construction, and mechanical engineering sectors are particularly crucial, as they drive infrastructure development, job creation, and skills enhancement as a future economic jack. While, the primary objective of the study is to investigate the challenges faced by SMMEs through the broader economic trends by unidentified household brand names which influence lack of capital cash-flow based on the marketing tools.

The vital role of SMMEs in South Africa's GDP and poverty reduction is underscored by their potential to create employment opportunities, especially for marginalized communities, which finds expression in in the engineering and construction sector like many other economic sectors. These enterprises facilitate skills development and contribute to localized economic growth, thereby advancing inclusivity and social equity. However, SMMEs in the civil, building, and mechanical engineering industries confront an array of challenges, including limited access to financing, inadequate skills development, regulatory hurdles, and market access constraints. This empirical study evaluated the marketing tools that will influence capital cash-flow in SMMEs. The study employed comparative methodology comprised of quantitative closed-ended questionnaire and qualitative open-ended questionnaire. Which linked well with pragmatic paradigm. The study aimed at utilising 130 SMMEs participants from the engineering sector. Backed by this dataset, the study revealed that most private sectors are engaged in supporting the growth and mentoring of SMMEs. Additionally, the Free-State government provides financial support and facilitates marketing access to the SMMEs. The study recommends that the Free-State government should intensify programmes of skills knowledge development and marketing competition to maintain capital cash-flow sustainability in SMMEs.