article · Smart and Sustainable Built Environment
The COVID-19 pandemic caused severe operational and financial disruption to small construction businesses in Ghana. An investigation into small contracting firms across the Central, Western, and Greater Accra regions indicates that these enterprises experienced critical financial distress, marked by interrupted cash flows and delayed payments for completed works. At the same time, firms encountered barriers to securing new contracts and struggled to maintain efficient site management. On-site worker productivity declined, which in turn increased overall project expenditures and extended completion schedules. Because small construction enterprises represent an essential engine of economic growth in developing countries, these accumulated pressures have placed their long-term survival under severe threat. To withstand such shocks, affected businesses must adopt targeted operational strategies to sustain their enterprises.
Small construction firms serve as crucial drivers of employment and economic growth in developing economies like Ghana. When widespread crises disrupt their operational capacity and cash reserves, broader infrastructure delivery and local supply chains are jeopardised. Identifying the exact nature of their operational and financial setbacks helps policymakers, industry associations, and financiers design relevant support systems to safeguard business resilience during crises.
The abstract does not indicate a direct technology commercialisation pathway, as it reports an empirical study of business challenges. However, the operational hurdles identified point to an applied opportunity for project management tools, workforce tracking systems, and cash-flow management solutions designed specifically for small-scale contractors seeking to control site costs and maintain project continuity during systemic disruptions.
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Purpose COVID-19 came as a surprise to the global economy and devastated many sectors worldwide, including the construction sector. Small construction firms are believed to be an engine of growth in many developing countries, including Ghana; thus, their survival cannot be trivialized. This study explored the impact of the COVID-19 on the businesses of the small confirms in Ghana. Design/methodology/approach A qualitative research approach was adopted for this study. Open-ended interview questions were distributed via email to 45 small construction firms (D3K3 and D4K4) purposefully selected. Thematic contents analysis was used to analyze 30 interview questions received. Findings This study has revealed that the COVID-19 has severely affected small construction firms in Ghana. Small construction firms are struggling in their finances; their cash flow/payments for work done are severely affected; they cannot secure contracts and management site efficiently. Their worker's productivity level has dwindled, which has subsequently escalated their project cost and completion time. These effects identified are significantly affecting the survival of these small construction firms. Research limitations/implications The study included small construction operating in the Central, Western and Greater Accra regions of Ghana during the second wave of the COVID-19 pandemic. However, the findings may be applicable to construction sites outside these regions. Practical implications The implication is the COVID-19 pandemic hugely impacts the small construction firm's business operations. Therefore, they must be mindful of the new norm (COVID-19) and institute strategies to help them overcome the challenges and sustain their businesses. Originality/value The study gives insight into the effects of the COVID-19 on the businesses of small construction firms in Ghana and proposes strategies that they must implement to overcome their challenges and sustain their businesses.
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DOI: 10.1108/sasbe-02-2021-0025
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