Optimising strategic partnerships to lower failure rates in small enterprises in South Africa : a construction industry perspective

Abstract

This study explores how the public and private sectors should cooperate and mutually assist small enterprises to succeed. Optimising strategic partnerships has heightened in importance in order to lower failure rates under small enterprises in South Africa. The South African government has launched a programme to encourage private sector to co-join forces to support incubators that are able to develop small enterprises. This study focuses specifically on small enterprises in the construction industry. This research study sets out to investigate three major approaches to lower failure rates under small enterprises in the construction industry. Firstly the research identifies relevant processes and relationships cited in the literature. The research seeks to mitigate and identify the risk implications of these recognised processes and relationships, and to construct solutions to lower failure rates in small enterprises. This study identified that standard construction industry processes and relationship bonds between small enterprises; large construction entities and government, influence and affect strategic partnerships. Ineffective processes and relationships complicate the small enterprise environment, which leads to increased failure rates. The study identified the need for further study in the future that could identify major risks and influencers impacting on processes and relationships. Key elements identified, should be applied to lower failure rates. The risk solutions approach should be to identify, categorised, and mitigate risk, which should be implemented to lower failure rates. A qualitative study design was adopted to identify processes and relationships. Data as collected from twenty small enterprises and five large corporations within the construction industry in South Africa. Data was collected through semi-structured interviews. An Optimising Strategic Partnership Model derived from the consolidated input that could be applied to identify, categorise, mitigate, and solve processes and relationships needs and assistance required by small enterprises.