Entrepreneurship in the construction industry

Abstract

In the dictionary entrepreneurship is defined as: "the activity of setting up a business or businesses, taking on financial risks in the hope of profit". However, this definition does not even begin to scratch the surface for the work done in the construction industry. Construction companies are ever changing and, depending on each project that is embarked on, can be huge blessings or huge headaches. Behind every strong construction company is a strong competitor who is willing to put his or her name on the line with each and every project. These entrepreneurs are the backbone of the construction industry and without their willingness to lead the way, the industry would not be accounting for 798.10 USD Billion Gross Domestic Product in the fourth quarter of 2016. This study sets out to discover common trends and qualities that accompany the construction industry's most successful entrepreneurs. The researcher wanted to discover what character traits and circumstances set one up for success when it comes to starting and running one's own construction company. In order to do this, interviews were conducted with eight entrepreneurs who have built impressive businesses during their professional careers. These interviews lasted around thirty minutes each and the interviewees were given a list of questions before hand to look over and contemplate their responses. The interviews were later transcribed and combed through for further analyzation. Many conclusions were determined based off of the data that was received from the interviews. The interviewees revealed that the optimum time for someone to start a company in the construction industry is when they are in their thirties. The researcher also discovered that the entrepreneurs who had ten plus years of prior experience in the construction industry set themselves up for a greater chance at success. Furthermore, the biggest reason that each entrepreneur set out to start their own company was to have more control over their own decisions. Finally, the researcher also found that construction companies function the best when they are set up as s-corporations. Further research should look further into external reasons that entrepreneurs find success in the construction industry. Some of these factors might include overall industry health, key competitors or potential clients opening or closing their businesses.