Small Business in the Construction Industry

Abstract

Small businesses play a significant role in the construction industry. When expressed in terms of the number of businesses, number of employees, or amount of payroll, they make up the largest share of the industry. The majority of new business formations come from small businesses. However, domination of the industry by small businesses has led to industry fragmentation and contributed to larger industry problems, including a lag in the development of new technology, declining profit margins, and an inability to implement quality management programs. Ways must be found to deal with these issues or the industry will not be able to maintain a competitive position in the global marketplace.