Small businesses making a difference

At least 28 500 new businesses, mostly micro establishments, have sprung to life since 2016/17 when Namibia’s recession of about five years started.
The Namibia Statistics Agency (NSA) recently released its Census of Business Establishments Report, which surveyed the responses of 61 502 enterprises countrywide between October 2019 and April 2021.
Out of the businesses that were operational, the majority (26 679) started operating in 2013 and before. In addition, 14 788 establishments opened their doors between 2018 and 2019, while 7 751 establishments started between 2016 and 2017.
“In general, this is a significant increase of 130.5% (34 823) of the establishments that started operating from the base period of 2013,” the NSA said in its report.
It continued: “Interestingly, despite the domestic economic recession experienced in 2018, an influx of 14 788 establishments were reported to have commenced operation between 2018 and 2019 across the country.
“During this period, Omusati region (2 712), Ohangwena region (2 407) and Khomas region (2 371) recorded the highest number of emerging establishments, an indication of a favourable business climate in those regions.”
The census covered all business establishments countrywide with a fixed location, irrespective of the number of employees except for open market and communal farming activities. In addition, establishments that were attached to household structures were excluded.
The majority of businesses – about 55 804 - were micro establishments, followed by small establishments at 3 918 and medium establishments at 1 435. Only 345 establishments accounting for 0.6% were large businesses.
PANDEMIC TOLL
About 98% of businesses surveyed were operational at the time. A total of 1 365 establishments were closed: 1 270 temporarily and 95 permanently.
“The closures were mainly due to the impacts of the Covid-19 pandemic,” the NSA said.
Oshikoto and Khomas reported the highest number of businesses permanently closed. Oshikoto’s number was 26 or 27.4% of businesses surveyed. In Khomas, 18, or 18.9% of businesses surveyed, had to close their doors permanently.
In Ohangwena, 282 businesses (22.2%), had to shut down operations temporarily. In Oshikoto the number was 16% (203 businesses), followed by 13.1% in Omusati (167) and Khomas with 10.5% (133).
Kunene was the least affected region. Here only two percent or 27 businesses were closed: 26 temporarily and one permanently.
JOBS
Businesses surveyed employed a total of 349 036 people.
Khomas was the biggest employer, providing jobs to 108 366, followed by Erongo (42 472), Oshana (29 355), Omusati (25 135) and Ohangwena (23 838).
Kunene and Kavango West registered the least number of employees of 9 209 and 7 728, respectively.
In terms of nationality, Namibian employees (342 096) accounted for the majority when compared to 6 940 foreign employees.
Wholesale and retail was the biggest employer, providing jobs to 67 973 people. This was followed by accommodation and food services businesses (55 479). Other big private sector employers included manufacturing (26 175), administration and support services (21 038), as well as agriculture and fishing (14 342).
Enterprises surveyed in public administration and defence employed 39 648 people in total, while 43 253 employees made a living from education. Health and social services provided jobs to 17 854 people.
Real estate businesses was the smallest employer of enterprises surveyed, sustaining only 560 jobs.
REVENUE
Most of the businesses surveyed – 35 648 enterprises – reported an average annual income of up to N$10 000.
“In this revenue category, Omusati, Ohangwena and Oshikoto regions ranked the highest, recording 8 024; 6 935 and 5 532 of establishments, respectively,” the NSA said.
Just over 12 000 businesses had an annual average revenue of between N$10 000 and N$50 000.
Only 520 businesses penned their annual average revenue at between N$10 million to N$25 million, most of them (215) in Khomas. Erongo had 95 players within this category, followed by Oshana with 80.
Just over 2 000 businesses showed an annual average revenue of between N$1 million and N$5 million, while 1 245 reported a figure ranging from N$5 million to N$10 million.
Wholesale and retail businesses were the highest revenue earners, with 1 500 showing an annual average revenue of N$1 million upwards. In manufacturing, 357 fell in this category, while 248 businesses in the financial and insurance sector reported similar revenue.
Businesses in the accommodation and food services sector generated the lowest annual average revenue.
Here, more than 21 000 businesses could muster an annual average revenue of up to N$10 000. Most of the surveyed establishments – nearly 6 000 – reported a figure ranging from N$10 000 to N$50 000, while only 282 exceeded annual average revenue of more than N$1 million.