Challenges facing Ghanaian SMES construction firm in acquisition of plant and equipment

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In spite of the many contributions of SMEs to the national economy of Ghana, SMEs in the construction industry are still confronted with challenges in acquiring plant and equipment (P&E’s), for achieving maximum results in returns for any construction work. Selecting the right option is one of the most relevant issues. In order to do so the following objectives were employed; to examine the frequent use of acquisition method, to identify the factors that effect on acquisition method and propose strategies for efficient acquisition method for SMEs in Ghana. This study explored the challenges facing Ghanaian SMEs construction firms in acquisition of plant and equipment. The study was carried out along the tenets of a preliminary literature review and followed by a survey using a structured questionnaire. Eighty (80) questionnaire was distributed base on purposive sampling technique, and 64 completed questionnaires representing 80% were considered valid for the analysis. The data collected were analyzed using Relative Importance Index (RII). The study revealed that, majority of SMEs always opt for hiring equipment rather than buying/owing/leasing or the combination of buying and hiring. It is interesting to note that a number of factors have effects on choosing acquisition methods in Ghana. Considering the challenges in order of extremely challenging, respondents indicated that, the purchasing price for equipment either buying, hiring or combining the two is highly beyond their financial base. Other factors like, continuous breakdown, (planning: budgets, upgrading, interchanging), pre-acquisition analysis: future work, market, transportation and assembly capability, supplies etc., were also considered critical. Further, a number of strategies have been proposed to curb the identified challenges for efficient acquisition mode for SMEs in Ghana.
A thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment, in partial fulfillment of the requirement for the Award of Master of Science.
Plant and equipment, Acquisition, Challenges, Ghana