Contributions of Construction Small, Medium, and Micro Enterprises towards the Sustainable Growth of Zambia

Abstract

Studies have shown that the construction industry (CI) contributes significantly towards economic growth. As indicated by numerous scholars, most of the operations within the industry are carried out mainly by Small, Medium, and Micro Enterprises (SMMEs). Thus, this study seeks to identify how these SMMEs contribute to the sustainable growth of Zambia. A questionnaire survey was conducted on the construction SMME owners who are also professionals in the CI. Data analysis involving descriptive analysis indicated that SMME owners perceive that enhancing employment creation and improving entrepreneurial skills are outstanding contributions of their firms. Exploratory Factor Analysis (EFA) established three underlying contributions in their order of significance, namely: the creation of jobs and the development of the economy, advanced methods of project execution, and modernised procedures in the construction industry. The findings aim to prompt both the government and private sector to provide a conducive environment for the operation of construction SMMEs. In addition, the findings will guide the stakeholders and policymakers in introducing policies and programmes that will influence the growth of these construction SMMEs.

1. Introduction

The construction industry (CI) is the greatest influencer and contributor toward the enlargement and sustainable growth of the global economy. This industry contributes substantially to the development of infrastructure around the globe. The CI is recognised as the most dynamic and amenable industry in the comprehensive economy of nations, due to the connection that it has with other industries [1]. The CI also contributes to a country’s development through the provision of employment. Due to its labour-intensive nature, the CI is one of the largest employers, as it provides work for both skilled and unskilled workers [2]. According to the Employment-Intensive Investment Programme (EIIP) published in 2020, it is recorded that the CI employs approximately 220 million people worldwide. This industry is identified to be a significant contributor to the level of employment in all countries [3].

As much as the CI is recognised worldwide as the sector that outstandingly contributes to meeting human and social needs, Choongo et al. [4] pointed out that the development path that the globe has taken in the past century through the CI has been ultimately detrimental to the health of the human environment and to that of ecology. The study further states that the CI is one of the sectors that consume a high share of natural resources, whilst polluting the environment and producing hefty amounts of waste such that the earth cannot assimilate and withstand the negative impacts.

Poor planning during project execution leads to an adverse impact on the environment and society, thus unsustainable urban development results in the disappearance of green areas, as well as a failure to revitalise areas for groundwater resources. Construction activities result in the contamination of groundwater and pollution of the environment, damage sensitive ecosystems, and lead to changes in drainage patterns. These activities also cause soil erosion, loss of valuable agricultural lands, and displacement of people. Moreover, these negative impacts are determined to affect not only the environment, but society as well [5]. Likewise, Kibert [6] identified the negative impacts of construction activities as desertification, deforestation, soil wearing away, harmful waste production, the change in climate, destruction of the ecosystem, eutrophication, depletion of fisheries, ozone layer depletion, and the pollution of land, water, and air. However, recent studies reveal that this can be mitigated through the implementation of sustainable development (SD) agenda [7].

According to Du Plessis [8], sustainability is a condition or state that would aid the sustained existence of human beings; the term SD arose from this general context. One of the common definitions is that recorded by the 1987 Brundtland Report (WCED), which indicates that the current needs should be fulfilled without compromising the ability of the future generation to fulfil their needs [6,9]. This can also be described as development of the economy that considers the protection of the environment and the fulfilment of human social needs. The subject of SD has been understood to be a continuous act of development that humans should embrace in order to enhance the state of sustainability. Thus, this process is continuous and requires attaining a balance between human demands and what is ecologically possible. Furthermore, sustainability, or SD, encompasses three aspects: economic, environmental, and social [4]. It is from this understanding that the concept of sustainable entrepreneurship is derived from SD as one that aims to balance the environmental, social, and economic objectives of construction Small, Medium, and Micro Enterprises (SMMEs). Sustainable entrepreneurship is viewed as a means of meeting environmental and social needs while preserving ecosystems, countering climate changes, improving fresh air supply and agricultural practices, and maintaining biodiversity. Construction SMMEs are advocated to play a key role in contributing to the attainment of social needs as well as achieving a stable economy through the practice of sustainable entrepreneurship [10].

Construction SMMEs are mainly family-owned construction businesses or solely owned firms that comprise a few foremen and casual labourers. SMMEs in the CI substantially impact skilled and semi-skilled employees. The activities of these enterprises within the CI significantly improve the sector’s performance and supply chain management. Hence, the government, as well as other stakeholders and policymakers, must encourage their existence [11].

Regardless of the limitations and challenges that construction SMMEs face, their significant role, especially in developing countries, cannot be ignored. Construction SMMEs have been recognised as a tool that can be utilised to attain any country’s objectives toward growth and development [12]. Biggs [13] has pointed out that several scholars have shown interest in the influence of construction SMMEs on employment creation, their ability to improve the performance of the construction industry, and their capacity to introduce innovation. Construction SMMEs are known to adapt easily to a continuously changing market and to consist of flexible business activities, which has provided them with an advantage over their large-scale competitors. Edmond and Miles [14] have pointed out that the growth of the country depends on the construction SMMEs’ accelerated productivity in the construction market.

Thus, based on this understanding, this study sought to identify the contributions of SMMEs in the construction industry toward the sustainable growth of Zambia. The aim is to integrate and attract the participation of stakeholders and the private sector in providing a conducive platform for construction SMMEs to operate and thrive. In addition, this study seeks to propel policymakers to implement policies and programmes that will encourage the growth of SMMEs. This paper consists of the following portions: the review of related literature and the research methodology employed. The final section provides discussions on the attained results in conjunction with the reviewed literature and attempts to conclude the study, including recommendations for further studies.

2. Overview of Small, Medium, and Micro Enterprises

Small, Medium, and Micro Enterprises (SMMEs) are a group of firms, which vary from small factories designing clothes or manufacturing metal parts and furniture, to medium-sized enterprises, and rendering services such as consulting, construction, restaurants, farming, and production of machinery. Research studies conducted over the years on the growth and development of SMMEs established that they embody unique advantages that lead to at least two exclusive contributions toward the sustainable growth of the global economy. The creation of employment and poverty reduction are the most reported contributions of SMMEs [12].

According to the research study conducted by the United Nations Department of Economic and Social Affairs [15], SMMEs create employment that lifts people out of poverty, with approximately 11% of the world’s population living below the extreme poverty threshold in 2019. Job creation in the private sector has proven to be the main driver of fighting poverty. SMMEs possess the ability to recruit, train, and provide employment to local community members, including those living in poverty. Furthermore, the study highlights that small businesses help alleviate poverty through micro-franchising. Micro-franchising uses elements of traditional franchising and targets and provides an opportunity for small businesses.

Chisala [16] pointed out that there is no intellectualised definition for SMMEs. However, different nations base their definition on their economic status. Likewise, Agyapong [17] also emphasises that, even at an international level, there is no singularly acclaimed definition for small businesses. The study further indicated that, considering influential factors such as improvement in technology, price level fluctuations, and innovation, the definition of SMMEs changes with time. Gross output, employment, and turnover are some criteria used to define SMMEs. However, Lim [18] states that failing to establish a suitable definition put SMMEs in a difficult position, as accessing legislative provisions and important facilities such as financial services is a very difficult and complex process, because they are not within the brackets that the country might have. Hence, there is a need for an establishment of a suitable definition that guarantees that all the necessary support is granted to businesses that honestly need it.

3. Sustainability through Construction Small, Medium, and Micro Enterprises

The outstanding contribution of the CI is the establishment of employment to sustain millions of people around the world. A great number of individuals with jobs are categorised to be employed by SMMEs [19]. SMMEs contribute up to 45% of total employment in emerging market economies. Over the years, employment generated by SMMEs has increased rapidly at the global level [3]. The study by Laurent [20] highlights some of the significant roles played by SMMEs in a global economy, comprising the creation of jobs and increase in national income. SMMEs are recognised to have strong social and economic impacts globally. Furthermore, scholars highlight that, in most countries, the CI is recognised as the largest employer, and this is owed to the activities in the industry [21,22]. Additionally, the CI either directly or inversely plays a part in fulfilling basic social needs by providing housing and consumer needs [23,24]. Similarly, Celik et al. [25] posited that the CI enables human beings to fulfil one of their sustainable basic needs, in the form of housing which protects them from external elements. Moreover, the infrastructure serves as a platform for providing and fulfilling the social needs of humans, which in turn results in enhanced livelihoods. According to Cheelo and Liebenthal [26], the Zambian CI meets human needs through the provision of infrastructure. This infrastructure includes transportation systems such as roads, bridges, walkways, rails, and airports. Also included are electric energy production and distribution systems, such as electric grids; water and sanitation systems, such as the supply of clean water; housing infrastructure, such as accommodation or buildings for residential and commercial use; and telecommunication installation, such as phone, television, and internet networks.

Although the CI is acknowledged to contribute significantly to meeting the social needs of humankind, the industry still negatively affects the environment and ecology. Hence, there is a need to introduce the tenets of SD practices and to educate construction SMMEs and encourage them to become Sustainable Entrepreneurs (SE). SEs are for-profit entrepreneurs that understand sustainability principles and commit their business operations towards the goal of achieving sustainability through discovery, creation, and exploitation of opportunities, as well as toward creating future goods and services that sustain the natural environment and contribute to economic growth [27]. Furthermore, SEs advocate for and ensure the practice of sustainable entrepreneurship within their businesses. These construction SMMEs aim to balance economic, social, and environmental needs through the enhancement of sustainability principles and the practice of sustainable entrepreneurship [9].

4. Contributions of Construction Small, Medium, and Micro Enterprises

Zambia is an irregularly shaped country on the African continent, located in the south-central region. The land area that Zambia covers is 752,600 km² and it shares a border with eight other countries. It is recognised as the third-largest copper producer globally, and its core resource is the land. The country has a population of 18.4 million and the GDP is recorded at USD 19.4 billion as of the year 2020. Moreover, one of the largest industries that Zambia comprises is the construction industry, which contributes massively to infrastructure development [28].

Sichali and Banda [29] state that the Zambian construction industry is one of the fastest-growing industries in the Sub-Saharan region. The industry plays a significant role in the country’s Gross Domestic Product (GDP). Additionally, this industry comprises five sub-sectors, namely: the clientele, design, assembly, manufacturing, and supply. Moreover, just like other construction industries around the world, the Zambian construction industry is concerned about its capacity to deliver and maintain buildings and infrastructure such as airports, dams, bridges, power stations, roads, and railways. Additionally, the Zambian construction industry is mainly focused on the development of infrastructure which is meant to meet human needs, such as housing, water supply, and sanitation, and which is driven towards wealth creation and self-sufficiency.

A large portion of business establishments around the globe represent Small, Medium, and Micro Enterprises (SMMEs). In Zambia, the SMME sector comprises approximately 97% of all businesses [3]. Thus, SMMEs play a vital role in driving the SD agenda forward in the CI, considering that they form a large portion globally. This is because they are more flexible, and thus can reach their customers more easily compared to more established businesses. Additionally, SMMEs can respond faster and more effectively to environmental issues and social problems [30].

In developing countries such as Zambia, SMMEs play an important role in production, infrastructure development, employment creation, and income distribution toward the attainment of sustainable growth. Competitiveness arising amongst these enterprises would contribute to easing the rate of unemployment and greatly influence the rise of women’s employment across the globe. Furthermore, this would efficiently contribute to the advancement of attaining sustainable development goals as per the United Nations (UN)’s objective. The UN’s objectives for SD include enhancing productive capabilities and reducing social exclusion [31].

SMMEs are acknowledged as tools used by countries in enhancing their social development goals and advancing employment opportunities, thereby contributing significantly toward the growth of the economy. Apart from boosting economic growth and creating job opportunities, it is established that in developing countries, SMMEs also support programmes meant to alleviate poverty [32]. In many nations, SMMEs are highly considered to be very instrumental in economic growth and development. This is attained through creating jobs, improving income for low earners, and increasing the tax base for the country, among other contributions [33]. According to Kasase [34], the growth and development of SMMEs are considered sustainable tools for poverty reduction and improving the quality of households through employment and sustainable wealth creation. The significant contribution of SMMEs towards economic growth and development, the growth and expansion of the CI, and those of other sectors are now widely acknowledged globally.

The study by Herr and Nettekoven [35] indicated that SMMEs create a platform for the improvement and development of unskilled and semi-skilled individuals, which reduces rural–urban migration. The business activities that take place within the SMME sector result in the growth of the nation’s gross domestic product (GDP), improve efficiency in the domestic market, and improve the linkages between diverse sectors. In addition, Azmat and Samaratunge [36] state that SMMEs boost productivity, positively influence industrial output, contribute to the expansion of the economy, significantly improve entrepreneurial skills, and drive industrialisation and urbanisation.

Dlungwana and Rwelamila [37] point out that SMMEs in the construction industry play a crucial role, more specifically in nations that are still developing. Thus, SMME entrepreneurs must equip themselves with adequate management skills to manage and operate their construction firms effectively and efficiently. This involves managing and observing the changes arising in the construction markets which mostly contribute to socio-economic development. Furthermore, these entrepreneurs should be capable to monitor and manage health and safety aspects, which are very crucial in the CI. Additionally, SMMEs are recognised as great influencers towards innovation and growth in the CI. Furthermore, SMMEs improve the performance of the CI, which influences the development of high-quality infrastructure [38].

Research studies conducted by numerous scholars indicated that SMMEs in the South African construction industry are vital in creating job opportunities, due to the fact that, by nature, they are labour-intensive. Likewise, in most developing countries, construction SMMEs are flexible in terms of innovation and adapt easily to the continuously changing construction market. Hence, nations have found SMMEs to be key instruments for economic growth because of their potential to reduce poverty and enhance employment creation [39]. Asare [40] states that scholars have identified SMMEs to be capable of increasing private ownership and promoting better and more efficient construction procedures that improve the construction sector. Conclusively, SMMEs are recognised to promote domestic growth in various sectors. To this end, twenty-two (22) contributions of construction SMMEs were identified from the reviewed literature, as presented in

Table 1. Definition of identified contributions of construction SMMEs.

Variable Codes	Definition
CON1	Contributes to the expansion of the economy
CON2	Enlarges the construction industry
CON3	Boosts productivity
CON4	Triggers innovation
CON5	Introduces improvement in the construction industry
CON6	Enhances better construction procedures
CON7	Enhances employment creation
CON8	Reduces poverty
CON9	Improves efficiency in the domestic market
CON10	Enhances the capacity to produce high-quality infrastructure
CON11	Aids social development
CON12	Positively influences the industrial output
CON13	Grows the nation’s gross domestic product
CON14	Reduces income disparities
CON15	Improves the linkages between diverse sectors
CON16	Improves the development of unskilled and semi-skilled employees
CON17	Reduces rural–urban migration
CON18	Drives industrialisation and urbanisation
CON19	Increases private ownership
CON20	Improves entrepreneurial skills
CON21	Promotes domestic growth in industries
CON22	Strengthens the resilience of the economy

.

5. Research Methodology

The research methodology is a blueprint that articulates how and when data is collected and analysed [41]. In order to address the research objective of this study, which is to identify the contributions of the construction SMMEs towards the sustainable growth of Zambia, the quantitative research approach was adopted. The quantitative research approach deals with quantifying and analysing variables to attain results. This approach involves the utilisation and analysis of numerical data using specific statistical techniques to answer questions such as who, how much, what, where, when, how many, and how [42]. This methodology pays attention to the ways in which people interpret their experiences and try to understand everything that is taking place around them.

The target population for the study was construction SMMEs, which, according to the National Council for Construction (NCC) in Lusaka, Zambia, are categorised between grades 4 and 6. As per the NCC, contractors within grade 4 make a maximum annual turnover of ZMW 2 bn to 10 bn, contractors in grade 5 achieve a maximum annual turnover of ZMW 0.5 bn to 1 bn, and contractors in grade 6 achieve less than ZMW 1 bn maximum annual turnover [28]. The samples were drawn using a random sampling technique. The choice of the population of owners was based on their continuous involvement in the day-to-day activities of their SMMEs in the Zambian construction industry. These owners are also professionals (town planners, land surveyors, architects, project managers, quantity surveyors, mechanical engineers, electrical engineers, civil engineers, construction managers, and construction project managers) in the Zambian CI.

A close-ended questionnaire survey was adopted as the data collection instrument due to its ability to cover many respondents because of ease of distribution [43]. One hundred and fifty (150) questionnaires were administered to construction SMME owners in Zambia. They were asked to indicate their perceived significance of the 22 contributions adopted for this research, and a 5-point Likert was used to rate these contributions based on their significance level. Level 1 was set as very low significance, 2 for significance, 3 for average significance, 4 for high significance, and 5 was set as very high significance. One hundred and five (105) questionnaires were retrieved and deemed usable for the study, representing a 70% response rate.

6. Findings and Discussion

The analysis of the primary data was conducted using two statistical methods, namely descriptive statistics and exploratory factor analysis (EFA). The descriptive statistics method was adopted to measure the significance of the contribution of construction SMMEs towards the sustainable growth of Zambia and to rank them in their order of significance. On the other hand, EFA was employed to determine the connection between the identified variables. The procedure, findings, and discussion of the results are as follows:

6.1. Descriptive Statistics

For this study, descriptive analysis was used to present the findings. The descriptive analysis incorporates the use of mean item scores (MISs), standard deviations, and the Kruskal–Wallis test. To determine the rank of each item, the study used indices. The point accepted MIS was 3.00, and any score below 3.00 was considered to be insignificant. Additionally, the standard deviation was used to rank the variables that consisted of the same mean value. The non-parametric test (Kruskal–Wallis test) was employed to measure the significant difference among the different professional categories and the selected contributions.

6.1.1. Background of Respondents

The demographic background of the selected respondents indicates that most of the construction SMME entrepreneurs in Lusaka possess bachelor’s degrees. Similarly, it was obtained from the analysis that most of the construction SMME owners were civil engineers by training. In addition, the established average working experience of these construction SMME entrepreneurs in the Zambian CI was 16.6 years, while the average age of their businesses was 18.12 years. Lastly, the construction SMME owners indicated that the motivation for establishing their businesses was to contribute to the economy. These findings indicate that the respondents had the appropriate educational background and experience to provide a meaningful contribution to this study.

6.1.2. Contributions of Construction SMMEs to Sustainable Growth

Presented in

Table 2. Contributions of construction SMMEs towards sustainable growth.

Contribution of Construction SMMEs	Mean	Standard Deviation	Kruskal–Wallis H	Asymp. Sig.	Rank (R)
Enhances employment creation	3.11	0.824	4.315	0.743	1
Improves entrepreneurial skills	3.05	0.881	5.710	0.574	2
Enhances the capacity to produce high-quality infrastructure	3.05	0.801	4.652	0.702	3
Improves the development of unskilled and semi-skilled employees	3.04	0.831	8.206	0.315	4
Enlarges the construction industry	3.04	0.820	6.926	0.437	5
Reduces poverty	3.02	0.832	2.510	0.926	6
Contributes to the expansion of the economy	3.01	0.966	8.773	0.269	7
Introduces improvement in the construction industry	3.00	0.888	5.175	0.639	8
Increases private ownership	2.99	0.925	7.799	0.351	9
Promotes domestic growth in industries	2.94	0.886	7.562	0.373	10
Enhances better construction procedures	2.93	0.858	3.533	0.832	11
Triggers innovation	2.91	0.900	11.118	0.134	12
Strengthens the resilience of the economy	2.90	0.894	3.468	0.839	13
Boosts productivity	2.89	0.870	6.416	0.492	14
Grows the nation’s gross domestic product	2.84	0.845	4.457	0.726	15
Improves efficiency in the domestic market	2.83	0.790	15.836	0.027	16
Positively influences industrial output	2.82	0.852	5.201	0.635	17
Aids social development	2.82	0.875	5.178	0.638	18
Improves the linkages between diverse sectors	2.78	0.877	10.394	0.167	19
Drives industrialisation and urbanisation	2.70	0.940	7.188	0.410	20
Reduces income disparities	2.56	0.808	7.844	0.347	21
Reduces rural–urban migration	2.30	1.073	14.287	0.046	22

are the respondents’ rankings on the contributions of the construction SMMEs using the mean score (MS) and standard deviation. These results include those of the non-parametric test. Ranked first was enhancing employment creation, with MIS of 3.11, SD of 0.82, Kruskal–Wallis of 4.32, and asymp. sig value of 0.74; improving entrepreneurial skills was ranked second, with MIS of 3.05, SD of 0.88, Kruskal–Wallis of 5.71, and asymp. sig value of 0.57. With MIS of 3.05, SD of 0.80, Kruskal–Wallis of 4.65, and asymp. sig value of 0.70, enhancing the capacity to produce high-quality infrastructure was ranked third. The least ranked contributions were: drives industrialisation and urbanisation, with MIS of 2.70, SD 0.94, Kruskal–Wallis of 7.19, and asymp. sig value of 0.41, was ranked twentieth; followed by reduced income disparities, with MIS of 2.56, SD of 0.81, Kruskal–Wallis of 7.84, and asymp. sig value of 0.35, which was ranked twenty-first; and the last in the ranking, at number twenty-two, was reduced rural–urban migration, with MIS of 2.30, SD of 1.07, Kruskal–Wallis of 14.29, and asymp. sig value of 0.05.

The findings are in tandem with the research study by Herr and Nettekoven [35], which indicated that SMMEs’ contributions are enhancing job creation, improving processes intended to improve the development of semi-skilled and unskilled employees, and contributing to the growth of the economy. Furthermore, the findings agree with the study by Azmat and Samaratunge [36], which highlighted that construction SMMEs improve entrepreneurial skills and enhance the CI. Likewise, the study by Asare [40] supports the findings of this study, which also indicated the reduction in poverty, enhancement of skills and capacity to execute infrastructure of high quality, and introduction of an improvement in the CI as the significant contributions of SMMEs. However, the results disagree with the research study by Herr and Nettekoven [36], which identified the reduction in rural–urban immigration as one of the contributions of SMMEs. The findings of the non-parametric test highlight a significant difference among the professional affiliations due to the factor ‘Improves efficiency in the domestic market’ as a contribution of SMMEs. This was established considering a p-value that was not greater than 0.05.

6.2. Exploratory Factor Analysis

Exploratory Factor Analysis (EFA) was used to establish variables that might be measuring similar aspects of underlying dimensions and to classify a cluster of related variables, thereby reducing them to a smaller logical framework [44]. The findings of the EFA on the contribution of SMMEs in the construction industry are presented in

Table 3. KMO and Bartlett’s Test for the contribution of construction SMMEs.

Kaiser–Meyer–Olkin Measure of Sampling Adequacy		0.920
Bartlett’s Test of Sphericity	Approx. Chi-Square	1858.00
	df	231.00
	Sig.	0.000

,

Table 4. Pattern matrix for the contribution of construction SMMEs.

Variables	Factors
	1	2	3
Reduces income disparities	0.772
Improves the development of unskilled and semi-skilled employees	0.712
Reduces poverty	0.687
Improves the linkages between diverse sectors	0.661
Enhances employment creation	0.641
Aids social development	0.640
Grows the nation’s gross domestic product	0.634
Promotes domestic growth in industries	0.620
Reduces rural-urban migration	0.600
Positively influences industrial output	0.590
Drives industrialisation and urbanisation	0.573
Strengthens the resilience of the economy	0.556
Enhances better construction procedures		0.834
Introduces improvement in the construction industry		0.785
Triggers innovation		0.723
Enhances the capacity high-quality infrastructure		0.649
Improves entrepreneurial skills		0.620
Improves efficiency in the domestic market		0.603
Increases private ownership		0.513
Contributes to the expansion of the economy			0.818
Enlarges the construction industry			0.816
Boosts productivity			0.721

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalisation ^a. ^a Rotation converged in 10 iterations.

and

Table 5. Total variance explained for the contribution of construction SMMEs.

Factors	Initial Eigenvalues			Extraction Sums of Squared Loadings				Rotation Sums of Squared Loadings
	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	12.254	55.699	55.699	12.254	55.699	55.699	6.168	28.035	28.035
2	1.339	6.086	61.785	1.339	6.086	61.785	4.874	22.153	50.188
3	1.230	5.589	67.374	1.230	5.589	67.374	3.781	17.185	67.374
4	0.940	4.273	71.647
5	0.807	3.669	75.317
6	0.666	3.028	78.345
7	0.610	2.771	81.115
8	0.594	2.701	83.816
9	0.457	2.078	85.894
10	0.431	1.957	87.851
11	0.405	1.841	89.692
12	0.388	1.764	91.456
13	0.272	1.238	92.695
14	0.255	1.159	93.854
15	0.245	1.113	94.967
16	0.213	0.969	95.935
17	0.184	0.838	96.773
18	0.177	0.806	97.580
19	0.170	0.774	98.354
20	0.144	0.657	99.011
21	0.130	0.590	99.601
22	0.088	0.399	100.000

Extraction Method: Principal Component Analysis.

and Figure 1. The EFA assessed the factorability of the data using two measures. The first one was the Kaiser–Meyer–Olkin (KMO), which is used to measure sampling adequacy. In addition, the value should be 0.6 or above for the factor analysis to be deemed appropriate. The results in Table 3 indicate that the KMO established a sampling adequacy value of 0.92, which exceeds 0.6, the recommended minimum. The second one was Bartlett’s Test of Sphericity, which measures the statistical significance of the findings and should comprise values of p < 0.5. For this study, Bartlett’s Test of Sphericity achieved a p-value of less than 0.5.

The data were subjected to principal component analysis (PCA) since the data meet the above criteria (with varimax rotation). Table 4 presents three factors of eigenvalues exceeding 1.0 that were obtained using a loading factor of 0.50 as the point of cut-off. The high values of the loading factor supported the suitability of the sample size for the EFA. Figure 1 (Scree plot) presents the excluded factors by pointing out the point of the cut-off at which the eigenvalues levelled off. The overall variance, as presented in Table 5, explained each component extracted, indicated as follows: Factor 1(55.70%), Factor 2 (6.09%), and Factor 3 (5.59%). Thus, the final statistics of the PCS and the obtained factors represent approximately 67.37% of the overall cumulative variance.

Founded on the extensive examination of the inherent connection amongst the variables under each factor, the interpretations made were as follows: Factor 1 was named employment creation and economic growth, Factor 2 was named improved construction procedures and innovation, and Factor 3 was named economic growth.

6.2.1. Factor 1: Employment Creation and Economic Growth

As presented in Table 4, the twelve (12) extracted contributions for Factor 1 were ‘improves the development of unskilled and semi-skilled employees’ (71%), ‘reduces income disparities’ (77%), ‘reduces poverty’ (69%), ‘improves the linkages between diverse sectors’ (66%), ‘enhances employment creation’ (64%), ‘aids social development’ (64%), ‘grows the nation’s gross domestic product’ (63%), ‘promotes domestic growth in industries’ (62%), ‘reduces rural–urban migration’ (60%), ‘positively influences industrial output’ (59%), ‘drives industrialisation and urbanisation’ (57%), and ‘strengthens the resilience of the economy’ (56%). This cluster accounted for 55.70% of the variance. These criteria share a common link to employment creation and economic growth.

As noted by Choongo et al. [31], unemployment is a serious concern for developing countries. The reduction in unemployment is a suitable strategy to mitigate poverty and rural–urban migration. SMMEs are recognised by the United Nations to be very instrumental in enhancing the realisation of SD through employment creation and skill development. SMMEs play a significant role in reducing the rate of youth unemployment and raising the number of employed women. Similarly, Revell and Blackburn [32] indicate that SMMEs operate in different dynamic sectors, as they contribute to enhancing the nation’s employment statistics. Furthermore, their business activities boost and expand the economy. In addition, Nuwagaba [33] states that SMMEs are very instrumental in the growth of the economy through the creation of jobs, which aids social development.

6.2.2. Factor 2: Improved Construction Procedures and Innovation

This cluster represented 6.09% of the variance. The seven (7) extracted contributions for Factor 2 were ‘enhances better construction procedures’ (83%), ‘introduces improvement in the construction industry’ (79%), ‘triggers innovation’ (72%), ‘enhances the capacity to produce high-quality infrastructure’ (65%), ‘improves entrepreneurial skills’ (62%), ‘improves efficiency in the domestic market’ (60%), and ‘increases private ownership’ (51%). Innovation and construction processes emerged as the common factors in these criteria. Over the years, the CI around the globe has been one sector that shows gradual signs of improvement in project execution processes. The construction sector uses the same procedures or processes to execute projects that have been used in past centuries. However, the present use of modern technologies shows signs of innovation taking place in the industry.

Innovation has become one of the SMMEs’ outstanding contributions within the industry. As reported by Owoseni and Adeyeye [45], SMMEs are considered to trigger and influence innovation within the CI. As a result of innovative construction processes, the performance of the CI is improved. In addition, the outstanding and improved performance of the CI results in the production or execution of high-quality infrastructure. Similarly, Dlungwana and Rwelamila [37] highlight that SMMEs influence innovative construction procedures, which, as a result, improve and aid the growth of the CI. Furthermore, Bolosha et al. [46] state that SMMEs advocate for innovation within the construction sphere; thus, it has been evident that they promote better and more efficient construction processes.

6.2.3. Factor 3: Economic Growth

The three (3) extracted contributions for Factor 3 were ‘contributes to the expansion of the economy’ (82%), ‘enlarges the construction industry’ (82%), and ‘boosts productivity’ (72%). This cluster represented 5.59% of the variance. These criteria share a common link to economic growth. Economic growth is the objective of every country (developed or developing) around the globe. The study by Kasase [34] highlighted that SMMEs, through their significant contributions, influence the development of the economy around the globe. Countries worldwide can evaluate their state of economic growth through the assessment of improved services and manufacturing sectors, which contribute to achieving the most equitable distribution of economic benefits.

Furthermore, a well-balanced distribution of income is attained through the creation of more jobs, the reduction in income disparities, as well the improvement of entrepreneurial capacity. Likewise, Tshikhudo [43] indicates that SMMEs are the major drivers of gainful and meaningful quality of life and the welfare of the citizens. Small enterprises ensure the equal distribution of income, and, through their business activities, strengthen the resilience of the economy. Baptista and Preto [39] state that governments, especially in developing countries, find SMMEs to be the key instruments for their economic growth. SMMEs, through their labour-intensive nature, employ unskilled and semi-skilled individuals, which leads to a reduction in the unemployment rate and aids continuous economic growth.

7. Conclusions and Recommendations

As established in this study, construction SMMEs contribute meaningfully to the sustainable growth of a nation. They are recognised as a suitable tool for achieving SD objectives in both developed and developing countries. Thus, issues concerning the growth of SMMEs have received massive attention among scholars, as well as stakeholders. The results from the questionnaire reveal that ‘enhancing employment creation’ and ‘developing of semi-skilled and unskilled individuals’ factors are perceived to be the most significant contributions of construction SMMEs. Likewise, the results of the EFA reveal that the contributions of SMMEs are ‘employment creation and economic growth’, ‘improved construction procedures and innovation’, and ‘economic growth’. These identified contributions are an eye-opener for the Zambian government to recognise the importance of construction SMMEs, thereby leading to their maximal utilisation in the country. Furthermore, they will become focal points for the stakeholders, policymakers, and private sector to support and encourage the continuous growth of these construction SMMEs.

The existence of construction SMMEs has proved to be vital to the sustainable growth of Zambia through their identified contributions. Thus, this research study recommends that the government and private sectors ought to provide support to construction SMMEs. These can be offered in the form of policies and programmes, efficient business legislation, and a conducive business environment. Furthermore, there are support mechanisms established to enhance the long existence of SMMEs in construction. Thus, it is recommended that models and frameworks should be established to assess and evaluate their effectiveness and efficiency. In addition, professional bodies and councils within the CI should establish a culture of regular assessment of construction SMMEs. These assessments should focus on their compliance and performance. This will enable the relevant bodies, as well as the government, to obtain knowledge of the challenges encountered by SMMEs in the CI and will also enable them to know or gauge the amount of support they require.

Furthermore, future studies should be carried out to determine the framework that Zambia needs to put in place to enhance the continuous growth of construction SMMEs, to sustain their contributions. In addition, further research should be conducted to assess the effectiveness of this framework in enhancing the continuous growth of SMMEs and the maintenance of their contributions.