Exploring the Impact of SMME Participation in Township Development Projects

The aim of the study is to assess how granting small, medium and micro-enterprises (SMMEs) the responsibility and duty to manage and carry out subcontracting work would affect the overall project negatively, compromising the expected work standards and inconveniencing the main contractor’s reputable work ethic. A descriptive survey research design was employed in this study. Data were collected through the use of semi-structured questionnaire. A total of 40 questionnaires were purposively administered to construction managers, project managers, site managers, quantity surveyors and architects in Port Elizabeth area of South Africa out of which 21 were duly completed and returned. The salient research findings revealed that most SMMEs required certain attributes to achieve work conformance, project sustainability and appropriate working relations with the main contractors. The findings also revealed that external factors also contributed to the ability of SMMEs to operate and function prudently, like credit accessibility and corruption, among other factors. Based on the research findings it is concluded that SMMEs require training, support from contractors in the construction industry, ease of access to financial credit and the introduction of uncompromising tendering policies to achieve better operations.