Analysing the influence of entrepreneurial orientation on labour-intensive SMEs within the South African construction industry

Abstract

Human resources are valuable and must be well managed to obtain optimal value. Best performances, entrepreneurial orientation and the labour-intensive nature of the construction industry are important factors to creating work, teaching new trades and poverty alleviation (Karnami, 2011). This study set out to ascertain, examine, and rank factors that appear to influence the entrepreneurial orientation of SMEs, while affecting labour-intensive productivity in small and medium companies in the construction framework for their relative significance in the rural economy and impact on society. This study aimed to demonstrate the impact of the construction sector in creating employment through SMEs’ orientation and labour-intensive methods. The secondary objective clearly outlined the concept of small and medium enterprises in the construction industry and job creation within Labour-intensive (LI). This study used a quantitative method to describe how the entrepreneurial orientations of small and medium-sized enterprises and labour-intensive enterprises in the construction sector affect employment opportunities in the community. The self-administered questionnaire, using a five-point Likert scale, was used to collect data on small and medium-sized enterprises in the construction industry. The convenience sampling method was used to determine the sample size of 100 participants. The research results showed that effective Enterprise-orientation (EO) has a positive impact on SMEs, which is a key factor in ensuring the success of enterprises. A well-established EO can even enhance and bring about new ideas and opportunities for labour performance and productivity, resulting in the creation of employment for disadvantaged inhabitants. All participants were from the construction industry and the majority of them felt strongly that the construction industry can be the solution to addressing unemployment issues and could subsequently play a pivotal role in the alleviation of poverty.