An exploratory study of the causes of failure in construction small businesses : a case of the Johannesburg construction industry, South Africa

Abstract: The objective of this study is to explore the causes of small businesses failure within the Johannesburg construction industry, a metropolitan municipality in the Gauteng province of South Africa. The data for the study was collected through a structured questionnaire survey distributed to a sample of 30 owners of small and medium construction companies in Gauteng. The research respondents were construction professionals who work in SMEs. The survey results shown that the major causes of small business failure can be divided into two aspects- which are external and internal. The internal factor revealed from the study include- lack of financial managerial ability and general administration of the business. The study findings revealed the urgent areas that small construction businesses need to be supported in order for them to be sustainable which in order guarantee job security for construction professionals who are employed in these companies; thus contributing to the macroeconomic indicators of the economy