Financial structures, use of trade credit and fiscal performance in the UK construction industry and the impact this has on small construction firms

Thomas, Ryan (2016) Financial structures, use of trade credit and fiscal performance in the UK construction industry and the impact this has on small construction firms. BSc dissertation, University of Portsmouth.

[img] PDF
Restricted to Registered users only

Download (1342kB)

    Abstract

    The construction sector is a major component of the UK Economy, with an output of £103 billion recorded in 2015, accounting for over 6.5% of the total economy contributing to the competiveness and prosperity of the economy. The construction Industry is highly fragmented with over 99% of businesses operating in construction being SMEs; turning over £1.801bn and making up just under a fifth of all SME businesses.
    The construction industry seems to be under performing in terms of its capacity to deliver value and there has been a lack of investment in construction efficiency and growth opportunities. Small business are the backbone of the construction industry and seem to be getting exploited by the big players; extending a significant amount of trade credit to both medium and large sized contractors financing there growth; the lack of trade credit received in comparison to the credit offered out threatens the survival of the smaller firms, prevents growth and limits the capacity of the industry smaller firms.
    Tier 3 and small contractors find themselves obliged to offer trade credit to firms Higher up the supply chain, despite being less able than their customers to source the finance required, and are unable to charge an economic price (equal to opportunity cost) for the credit they extend. On top of the harsh payment terms, SMEs in construction often complain about late payment, causing further problems to the cash flow.

    Item Type: Dissertation
    Departments/Research Groups: Faculty of Technology > School of Civil Engineering and Surveying
    Depositing User: Beth Atkins
    Date Deposited: 01 Sep 2016 13:59
    Last Modified: 01 Sep 2016 13:59
    URI: http://eprints.port.ac.uk/id/eprint/21683

    Actions (login required)

    View Item

    Document Downloads

    More statistics for this item...