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Abstract:
The South African economy is currently facing a high prevalence of unemployment amongst the youth. The role of implementing SMMEs (Small, Medium and Micro Enterprises) in the economy was to try and alleviate unemployment rate to ensure that citizens are economically active. This research study investigates factors contributing to project failure by small Black-owned construction companies in the Durban Metro Municipality. The current predicament that Black SMME owners are facing is the high project failure rate experienced in the Durban metropolitan. Literature postulates that the lack of management of finances, lack of skills and corruptions are the main drivers of project failure in SMMEs undertaking construction. The study employed a qualitative research methodology using a face-to-face semi-structured inter views as a data collection instrument. Non-probability purposive sampling was employed with a total of nine participants. The research found that the main factors contributing to project failure in Black-owned SMMEs included lack of skills, poor management of resources, delayed payments and lack of experience. The participants had mixed views on the effectiveness of government initiatives in assisting emerging SMME owners. The recommendations of the study included improving access to funding, mentorship, diversifying service provision and improving government interventions. The role of SMMEs will not only add to sustainable economic development in Durban but the whole of South Africa.
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