Thousands of local SME registrations

A total of 1 719 registered SMEs closed down during 2015 to 2016.

14 November 2017 | Business

Staff reporter - More than 15 000 small and medium enterprises (SMEs) were recorded by the ministry of trade and industry between 2000 and 2016.

Of these, 605 were financed by commercial banks, Bank Windhoek said in a statement.

Current statistics reveal that a total number of 1 719 registered SMEs closed down during 2015 to 2016.

“This necessitated debates among various scholars,” said Joseph Sheehama, manager of Bank Windhoek’s Katutura Branch.

Sheehama presented the findings on his study, titled “Exploring Sustainable Economic Challenges and Opportunities Experienced by the Funded Small and Medium Enterprises at a Selected Commercial Bank in Namibia”, at the recently concluded Sustainable Economic Growth and Social Development Conference.

Overall findings revealed that SMEs were experiencing challenges that impeded their operation - access to finance, employee turnover and availability of affordable business premises.

The study’s findings on the socio-economic demographic data had a 100% response rate – 40% female and 60% male. The majority operated from the SME Incubator Centre in Windhoek. Forty participants out of a total of 70 specialised in the manufacturing and construction sector. Only eight conducted business in the education and training sector.

Opportunities available

There are various sustainable opportunities available to SME owners. “Major employers of unskilled or semi-skilled workforce need to be supported in order to recruit citizens, especially the youth,” said Sheehama.

There is also an essential need for monetary assistance from financial institutions.

The study provides recommendations that can serve as guidelines. Firstly, training programmes need to be strengthened in SME divisions. Topics such as managing work diversity, stress management and integration of technologies in businesses for improved performance need to be prioritised.

Secondly, stakeholders need to introduce leadership and management programmes.

Conclusions

The study concluded that the majority of SMEs are in the manufacturing, construction and agricultural sector. Most of them are experiencing major economic challenges, such as access to finance, high employees turn over, lack of start-up capital and management skills deficiency.

Sheehama said that in order to achieve sustainability, these issues should be addressed. He also pointed out that the education and training sector needs to be explored as they can contribute to the country’s economy.

Sheehama was part of a group of MBA students selected by economic professors from the University of Namibia (Unam) and the Namibia University of Science and Technology (NUST).

His study will soon be published on the website of the International Journal on Current Research (IJCR).

Similar News

 

Chinese swoop on Rössing

17 hours ago | Business

CATHERINE SASMAN State firm China National Nuclear Corporation (CNNC) is said to be in pole position to acquire the majority...

Asparagus project in Omusati boosted

17 hours ago | Business

Namibia's first-ever asparagus agro-processing factory will be sustained by a 360-hectare production area once full capacity is reached.A 60 ha plantation is already underway at...

Kalkfeld business market for free

17 hours ago | Business

A public market at the Kalkfeld business park under the Namibia Development Corporation (NDC) will be leased to the Otjozondjupa Regional Council (ORC) from October...

Tullow Oil abandons first Namibian well

23 hours ago | Business

Africa-focused Tullow Oil will abandon its first well in Namibia, but data gathered in the project indicated it might strike lucky in another attempt, the...

More mining jobs under threat

1 day - 24 September 2018 | Business

Namdeb's Elizabeth Bay mine could be placed under care and maintenance, if no buyer is found.Production at the mine, which was put up for sale...

MultiChoice: Dual-listing on the NSX not planned

1 day - 24 September 2018 | Business

Naspers believes the planned listing of MultiChoice on the JSE is the “most suitable” option at present and isn’t considering listing on other stock exchanges...

Eco Atlantic ups stake in oil exploration company

1 day - 24 September 2018 | Business

Jo-Maré Duddy – Eco (Atlantic) Oil & Gas, pending regulatory approval, will be the sole owner of Pan Africa Oil Namibia Holdings (PAO Namibia) following...

Telecom directory tender catches flak

4 days ago - 21 September 2018 | Business

South African majority-owned company TDS Directory Operations (Namibia), which has been compiling the telephone directory of Telecom Namibia since 2007, is likely to be favoured...

Fresh warnings as phosphate deadline looms

4 days ago - 21 September 2018 | Business

As the deadline for submissions regarding a proposed marine phosphate mining project at Walvis Bay looms, a respected fishing industry expert says the impacts of...

Global Petroleum invests in search for oil

4 days ago - 21 September 2018 | Business

Jo-Maré Duddy – Global Petroleum Ltd, listed on the London and Australian Stock Exchanges, has widened it footprint in the country by acquiring an 85%...

Latest News

Chinese swoop on Rössing

17 hours ago | Business

CATHERINE SASMAN State firm China National Nuclear Corporation (CNNC) is said to be in pole position to acquire the majority...

RDP bungles councillor’s resignation

17 hours ago | Politics

KENYA KAMBOWEA former Rally for Democracy and Progress (RDP) town councillor, who resigned from the party about seven weeks ago, says he is still receiving...

Asparagus project in Omusati boosted

17 hours ago | Business

Namibia's first-ever asparagus agro-processing factory will be sustained by a 360-hectare production area once full capacity is reached.A 60 ha plantation is already underway at...

Kalkfeld business market for free

17 hours ago | Business

A public market at the Kalkfeld business park under the Namibia Development Corporation (NDC) will be leased to the Otjozondjupa Regional Council (ORC) from October...

Swapo elders ‘ignorant’

17 hours ago | Politics

JEMIMA BEUKES The Damara King’s Council has branded the Swapo Party Elders’ Council ignorant following its suggestion last week that...

Entrepreneurs: When the going gets...

17 hours ago | Banking

Entrepreneurs are people are skilled at adapting and being resilient in uncertain situations and come up with new, different and innovative ideas.“The challenges currently being...

TransNamib’s shocking meltdown

17 hours ago | Columns

The Namibia Transport and Allied Workers Union (Natau) has become the latest organisation to hit out at the TransNamib board for alleged interference. The Paul...

Laughter is the best medicine

17 hours ago | Health

Henriette Lamprecht – It’s contagious and good medicine – not only for the body, but for the mind and soul as well. It lightens your...

Smelling the roses is not...

17 hours ago | Health

In today’s rat race it’s easy to lose your way in the daily grind while trying to keep your head above water. Our responsibilities as...

Load More