Benchmarking SMMEs’ management performance in the built environment of Gauteng province, South Africa

Abstract

English: In South Africa, small, medium and micro enterprises (SMMEs) are characterised by poor management, weak entrepreneurial performance and low global competitiveness, among other challenges. The primary objective of this article is to identify reasons for this poor performance of SMMEs in the building construction industry. Secondary objectives were to evaluate, benchmark and rank the management performance of SMMEs in this industry. An evaluative, comparative, analysis research design was constructed to do the research. A total of 326 employees from 64 randomly selected SMMEs participated in a self-assessment evaluation process. The Performance Excellence Self-assessment Questionnaire (PESQ) was used to collect primary data. Secondary data on the models of management performance was obtained from relevant publications. The study established management performance benchmarks for SMMEs in the Built Environment. SMMEs in the study area in South Africa do not benchmark their management performance against world-class and SADC best practices. The three lowest ranked criteria out of the eleven management performance criteria evaluated were social responsibility, business processes, and planning and strategy. These criteria were the main causes of poor management performance of SMMEs. The study concluded with a summary of management performance scores and recommendations for improving productivity and benchmarking of SMMEs in the building construction industry against international comparative levels.

Afrikaans: Klein-, medium- en mikro-ondernemings (KMMOs) in Suid-Afrika word onder andere gekarakteriseer deur swak bestuur en swak entrepreneursvertoning sowel as ’n lae vlak van globale kompeterende vermoё. Die hoofdoelwit van die artikel is om redes vir die swak bestuur van KMMOs in die bou- en konstuksie-industrie te identifiseer. Newedoelwitte het evaluering, vergelyking en bepaling van rangorde van bestuursvertoning van KMMOs ingesluit. ’n Evaluasie, vergelykende en analitiese navorsingsontwerp is vir die studie gebruik. ’n Totaal van 326 werknemers van 64 willekeurig gekose KMMOs het deelgeneem aan ’n self-assesseringsproses. Die “Performance Excellence Self-assessment Questionnaire (PESQ)” vraelys is gebruik om primêre data te versamel. Sekondêre data oor modelle is uit relevante literatuur verkry. Die studie het vergelykingsbasisse vir KMMOs in die Bou-omgewing daargestel. KMMOs in die studie-gebied vergelyk nie formeel hulle bestuursvertoning met wêreldstandaarde of Suid-Afrikaanse Ontwikkelingsgemeenskap (SAOG) lande nie. Die drie kriteria wat die laagste rangorde ten opsigte van bestuursvertoning onder die KMMOs verkry het was sosiale verantwoordelikheid, besigheidsprosesse asook beplanning en strategie. Hierdie drie kriteria was dan ook op die oog af die hoofoorsake van swak bestuur in die KMMOs. Die navorsingstudie het afgesluit met ’n opsomming van bestuursvertoningresultate asook aanbevelings om produktiwiteit en vergelykbaarheid van KMMOs in die bou- en konstruksie- industrie in Suid-Afrika na internasionale standaardvlakke te verbeter.