Contributions of Small, Medium and Micro Enterprise Contractors on Road Construction Projects in Ethiopia
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Date
2013-12
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Addis Ababa University
Abstract
This thesis presents the contributions and effects of small, medium and micro enterprise
(SMME) construction contractors on the road construction projects of Ethiopia. The main
objective of this thesis is therefore to present assessment report regarding the contributions and
effects of the SMME construction contractors on road construction, maintenance improvements
and their operational challenges in Ethiopia.
The study had developed through literature survey and in addition to this, questionnaire based
studies were made to provide an overview of the various contributions and effects of small,
medium and micro enterprises on road construction projects of Ethiopia as well as their
challenges. Interviews were also conducted with various parties which have direct involvement
in construction activities to strengthen the ideas of the subject matter. Extensive literature review
and field surveys are conducted on 75 respondents. The field survey used the questionnaire
instrument and random sampling. The critical findings from the literature were that there are
huge contributions and effects as well as problems in the operations of SMMEs on infrastructure
development projects.
After the field survey, the analysis result revealed that small, medium and micro enterprises
(SMME’s) seen as an essential input to the road network development and maintenance work of
the road construction sector and are springboard for growth, job creation and social progress.
The research also confirmed operational challenges as lack of finance, limited skills in
construction management, and prevalence of unethical conduct amongst some of the
stakeholders which are obstacles to their maximum potential contributions and their
development. The findings also make an invaluable contribution to the search for solutions to the
existing problems faced by SMME contractors in Ethiopia and provide insight for further
research in institutional weaknesses and policy issues regarding the problems. The
recommendations include the developing of training programmes in construction and business
management, introduction of sector specific financing programmes and the provision of an
appropriate regulatory and legislative framework. Conclusively, further investigations, research
works and discussion forums are advisable by all stakeholders and the concerned higher
government officials in order to give tangible solution to their challenges.
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Keywords
Projects in Ethiopia