AN ASSESSMENT OF THE ENTREPRENEURIAL SKILLS OF QUANTITY SURVEYING CONSULTANTS IN KADUNA STATE, NIGERIA

ABSTRACT

Previous studies have indicated a high firm mortality rate in the construction industry especially in Quantity Surveying (QS) firms. The failures have been attributed to the poor adoption of certain entrepreneurial skills by the QS professionals in running their firms. This study assessed these entrepreneurial skills (marketing, communication, financial, management and team-player skills) of Quantity Surveying consultants in order to synthesise a response strategy for the adoption of these skills for the survival and growth of QS firms in Nigeria. Data was collected through well-structured questionnaires which were distributed to 34 Quantity Surveying consultants in Kaduna. Tools for analysis were frequency tables, means, percentages and standard deviation. Validation of data collected was done by conducting interviews with principal partners/owners of registered QS firms that are above 10 years old to get an in-depth understanding of some of the issues raised during the questionnaire survey. The summary of the findings in this study suggest that the adoption of entrepreneurial skills by QS consultants in Kaduna State is quite significant with exception to marketing which was the least adopted skill. Management, communication and financial skills were more adopted by the firms who have experienced growth. However, some of the skills were adopted indirectly by the firms so as not to offend the professional code of conducts. To this end, this study concludes that the adoption of entrepreneurial skills in QS firms is of paramount importance in the light of the stiff competition in the profession. While the adoption of these skills may not be the only ingredient for QS firm‟s survival and growth in Nigeria, they have helped some firms to keep afloat. Some business strategies such as dealing honestly with clients, having a good pricing/bidding strategy etc. were recommended for adoption by practising QS firms. Similar studies should be conducted nationwide to obtain and compare results from other States.

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background to the Study

It is evident from literature that entrepreneurs are viewed as “individuals with passion who are willing to take calculated risks towards the creation of new ideas and creative solutions geared at generating income and effecting positive dynamic changes (Kuratko, 2003). Entrepreneurs are known for their “creative abilities to marshal needed resources, build solid business plans and harness opportunities where others see chaos in order to generate income” (Kuratko & Hodgetts, 2004). Although, business owners are often regarded as entrepreneurs, entrepreneurship is more than mere creation of business. Business creation is one important aspect of entrepreneurship as well as identifying opportunities, taking risks and having the ability to push an idea through to reality (Kuratko, 2003; Kuratko & Hudgetts, 2004). While the debate rages on as to what entrepreneurs are or not, one thing cannot be disputed: adopting certain entrepreneurial skills can help one become successful in business. According to Kuratko (2003) „entrepreneurial perspectives‟ can be developed in individuals who can exhibit them inside or outside an organization or business to bring forth creative ideas”. Vijayakumar and Jayachitra (2013) also stated that “entrepreneurship is not a walk in the park for anyone” because entrepreneurs use their skills to succeed and grow their business. There are many skills entrepreneurs and would-be entrepreneurs use to succeed in business. Literature is full of them. Some include: the ability to spot new trends, the ability to hire good hands, manage and train staff, creative/innovative skills, leadership skills, productive skills, ability to identify and connect with customers, ability to deal with failure, etc. (Lewis & Churchill, 1983; Miles & Snow, 1984; Hisrich & Peters, 1998; Coviello & Martin, 1999; Zott & Huy, 2007; Adeyemo, 2009) Buthelezi (2011) identified some skills essential for professionals in construction and engineering industries, which are: marketing and operating skills, management and administrative skills, financial skills, communication skills, and inter-personal relation skills. Jaafar, Aziz, and Wai (2008); Ogbu (2015); Yankah (2015b) stated that „Marketing‟ is an important entrepreneurial skill which has a potential to improve firm performances. This was further justified by Perreault and McCarthy (2005) who stated that when goods or services are backed by effective marketing, business success and improved firm performance can be guaranteed. Ojo (2011) also reported that the Nigerian construction market which is presently experiencing intense competition is in need of effective marketing strategies for business growth of firms in the industry. Globally, the viability and survival of firms in the construction industry has reportedly become more challenging. Companies are now becoming more specialised, client expectations are getting complex, the economy is highly unstable, population of professionals is increasing rapidly causing intense competition within the industry and as a result, there has been reports of high firm mortality especially in consultancy firms in developing countries like Nigeria (Ogbu, 2015; Yankah, 2015a)..Researchers reported a 10 year firm survival rate in the construction industry which is one of the lowest when compared to other industries with only 36.4% of new construction firms reaching their 5^th year anniversary (Mcintyre, 2007; Sipos-Gug & Alina, 2014; Kissinger, 2015). Similarly, it was found that consultancy firms (especially Quantity Surveying Consultancy Firms) experience similar firm mortality rates or even worse because apart from being among the least recognised profession in the industry, its services are gradually being dominated by other professions within the industry (McGaw, 2007; Jaafar et al., 2008; Ogbu, 2015; Yankah, 2015a) One potential means of improving the relevance, performance and survival of QS firms in Nigeria according to Ogbu (2015) is the adoption of entrepreneurial skills especially „Marketing‟ which is a debated topic in the guideline for professional practice of the Nigerian Institute of Quantity Surveyors (NIQS).  Previous studies reported that the marketing performance of Quantity Surveying Consultancy Firms is under serious criticism (Morgan & Morgan, 1990; Morgan & Morgan, 1991; Ogbu, 2015; Yankah, 2015a; Yankah, 2015b). Yankah (2015a) specifically reported that 82% of the Quantity Surveying Consulting Firms (QSCF) in Ghana had technical persons responsible for marketing in addition to their core functions. This suggests that marketing is not given the needed priority it deserves in QS firms. In the same vein, Ogbu (2015) reported that some QS firms in Nigeria perform poorly while others struggle to survive primarily because of an increased competition in the Nigerian construction market which is exacerbated by a number of factors such as the dearth of skilled operatives and the unwillingness of the professionals to readily adopt strategies to control business failures. Another concern is the commitment of construction professionals to success of projects while giving less thought to the survival and growth of their firms (Abd-Hamid, Azizan, & Sorooshian, 2015). This explains why they find it difficult to thrive for a long time despite their huge turnovers.

1.2 Statement of Research Problem

There is hardly any research work available regarding the adoption of entrepreneurial skills for survival of QS firms. The related ones are: a study on the management-related causes of business failures in the construction industry by Dun and Bradstreet (1992) an investigation of the external causes of small construction firms business failures by Foust (1989) and an identification of factors that distinguished survivors from failures amongst small construction firms by Hall (1994). Furthermore, Jaafar et al. (2008) explored the marketing practices of professional engineering consulting firms while Jay, Yen, and Hsu-che (2013) developed a model for predicting construction business failures. Sipos-Gug and Alina (2014) proffered external interventions for encouraging construction entrepreneurship, Abd-Hamid et al. (2015) identified the success and survival factors for construction enterprises and Ogbu (2015) developed a framework for the implementation of marketing strategies in the Nigerian Quantity Surveying firms. Yankah (2015a) investigated the marketing performance of Quantity Surveying Consultancy firms and Yankah (2015b) investigated the principal barriers to the marketing performance of QS consultancy firms. Marketing is been explored in recent Quantity Surveying literature because it is said to be a key management strategy for improving firm survival in periods of intense competition which the industry is currently experiencing (Nkado, 2000; Smith, 2004; Alfred, 2007; Jaafar et al., 2008; Ogbu, 2015). Poor adoption of entrepreneurial skills in construction professional firms especially QS firms which have resulted in increased firm mortality rate remains an existing issue. Therefore, this study sought to assess the entrepreneurial skills of Quantity Surveying Consultants in Nigeria with a view to develop effective strategies for adoption of these skills. It is hoped that this will provide a way-forward to positively improve the survival of QS firms while providing a strategy for the consultants to emulate in building successful firms.

1.3 Aim and Objectives

The aim of this study is to assess the entrepreneurial skills of quantity surveying consultants in Kaduna State Nigeria in order to develop a strategy for adopting these skills in QS firms

The objectives are to:

1. Identify the entrepreneurial skills of QS consultants
2. Ascertain the level of adoption of entrepreneurial skills in QS firms

• Assess the barriers to the adoption of entrepreneurial skills in QS firms

1. Evaluate the impact of adopting entrepreneurial skills in the growth of QS firms
2. Synthesise response strategies for adopting entrepreneurial skills in QS firms.

1.4 Need for the Study

The study is relevant in providing strategies for the adoption of entrepreneurial skills in quantity surveying firms which improves the survival rates of QS firms in Nigeria while promoting the image of the profession. This would add more value to the construction industry in terms of enhancing survival, growth and profitability of firms in the industry by generating income for both the industry and the economy at large.

1.5 Scope and Limitations

Scope: This study was delimited to the construction specific entrepreneurial skills identified from literature (marketing, management, financial, communication and team-player skills) and was assessed in Quantity Surveying consultancy firms only. Other entrepreneurial skills as well as other professions within the industry were not included in the study because of the issue being addressed. Quantity Surveying consultants whose firms are above 10 years in Nigeria were the object of target. The study was conducted in Kaduna which has the largest number of Quantity Surveying firms that have been registered and licensed by the Quantity Surveying Registration Board of Nigeria (QSRBN) above the past 10 years (see appendix III).

Limitations: The major limitations to this study were:

1. This study could not obtain and compare results from other states because majority of old registered QS firms which are above 10 years were located in Kaduna state. Therefore, a recommendation that similar study should be conducted in other states to obtain and compare results was made at the end of the study.
2. Possibility that some of the questionnaires were not answered as objectively and honestly as required by the respondents which might have affected the quality of information sourced. To reduce the impact of this limitation, a follow-up interview with principal partners or owners of the QS firms were conducted. This interview ensures that only the consultants provided the information as objectively required.

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