Assessing the Challenges Confronting Small-Scale Building Firms in Abuja Nigeria

Abstract

Small building construction firms play a critical role in urban development yet face persistent operational challenges that hinder their growth and sustainability in Nigeria. This study investigates the major challenges and strategies influencing the performance of small construction firms in Abuja. The objectives were to identify key operational constraints, evaluate their impacts on firm performance, and assess effective management strategies for improvement. A survey research design was adopted, and data were collected from 150 respondents drawn from registered firms in the Abuja Business Directory using structured questionnaires. The data were analyzed using descriptive statistics, Mean Item Score (MIS), and Relative Importance Index (RII). Findings revealed that financial difficulties, multiple taxation, and macroeconomic instability are the most critical challenges confronting small firms. Conversely, strategies such as waste minimization, technology adoption, and workforce training were perceived as highly effective in improving productivity. The study concludes that addressing financial barriers, enhancing resource management, and formulating supportive policies are vital for strengthening the competitiveness and sustainability of small construction firms in Nigeria.