Assessing The Cause Of Failure Of Smm Construction Companies In Addis Ababa

The importance of small, medium and micro enterprise contractors in Ethiopia has beenrnrecognized by many researchers and policymakers. The contribution of small contractors to therncreation of jobs and to the alleviation of poverty has also been recognized by many developingrncountries including Ethiopia. However, these enterprises have got many problems which arerncausing failure in their business, especially in the construction industry.rn The main objective of this thesis is to assess the cause of failures that are facing on Small,rnMedium and Micro Enterprise (SMME) construction companies in Addis Ababa. The researchrnused a questionnaire survey on 162 SMME construction companies and case studies to achievernthe study objectives.rn The research was focused on organizational and economic- environmental related factors whichrnwere the cause of failure of these enterprises. The managerial, financial, expansion andrninformation technology related factors were classified as organizational challenges whilernmarketing, payment, regulation and policy related factors were studied as economic-rnenvironmental related factors. rnThe research established that marketing factor is the most challenging factor which becomes therncause of failure of SMME construction companies in Addis Ababa. Next to marketing factor,rnanother challenge which usually happens in SMME construction companies in Addis Ababa is arnfinancial problem. This occurred due to late payment from the client and lack of working capitalrnfrom an enterprise. According to research results, managerial, ethical, information- technologyrnand government policy and regulation related factors were other challenges which has faced onrnSMME construction companies. rnThe research has also suggested some recommendations for the concerning bodies, as they needrnto have an appropriate understanding about these factors in order to solve marketing, financial,rnmanagerial, ethical and government policy and regulation problems. These will assist SMME‘srnto flourish and achieve their objectives of profit, growth and employment opportunities and alsornreduce poverty. Therefore, it is important for the government and nongovernmentalrnorganizations together to formulate their policies and strategies which makes easy to meet therngoal of these enterprises.

Get Full Work

Report copyright infringement or plagiarism