Factorial analysis of capacity-building needs of small- and medium-scale building contractors in developing countries

Abstract

Purpose The needs assessment is the heart of any capacity-building strategy since it determines the design of any intervention, and also helps to prioritise the allocation of resources. Whereas there is a considerable amount of literature on the challenges faced by small- and medium-scale building contractors (SMBCs), very little is known about the needs (support) required by SMBCs. But given the critical role played by SMBCs in the construction industry demands, an understanding of how this sector can be assisted is required. The purpose of this paper is to contribute to the literature relative to capacity building of SMBCs by exploring and examining the needs with the objective to extend the understanding on how to promote and sustain SMBCs to continue their infrastructural delivery at the local and rural areas in Ghana. Design/methodology/approach A questionnaire with five-point Likert scale is administered to 416 respondents, including local government authorities, consultants, first-class contractors and SMBCs using simple random and purposive sampling techniques. Data generated from the survey are analysed using mean score ranking and principal component analysis, thus enabling the findings of the study to be examined under six thematic areas. Findings The SMCs needs identified include anti-corruption measures, job accessibility, technical and technological assistance, favourable fiscal policy, business development support and financial assistance. The findings of the study bring to the attention of policy makers the critical areas that required support by the assistance of SMBCs. In the interim, the study recommends the extension of business advisory services to the SMBCs by National Board of Small-Scale Industries, whilst in the long term, the government must create the necessary business operating environment to promote SMBCs pertaining to the industrial sector of the economy. The SMBCs must also factor the needs into their business operations that can be addressed from within. Originality/value The study suggests the need of SMBCs in building a robust construction industry in developing countries.