Track: Construction Management
Abstract
A high number of emerging construction companies in South Africa close down within the first three years of establishment. The construction industry plays a major role in the country’s gross domestic product and closure of companies contribute to the increasing risk of high unemployment rate in South Africa. A comprehensive literature review identified eight factors which contribute to failure of emerging construction companies. Primary data was collected via a questionnaire which was distributed to owners and managers of emerging construction companies. The study reveals that a lack of financial management by leadership is the most prominent factor that leads to failure or success of companies.