Investigating the challenges faced by SMEs in Namibia

Abstract

The main objective of the study was to establish the critical factors undermining the operations of SMEs in Namibia. In carrying out this study, we relied upon the use of two incubation centres in Namibia, namely, the Soweto and Dr. Libertina Amadhila incubation centres as laboratory test grounds. Primary data were obtained mainly from the use of questionnaires. However, observations, verbal interviews, including face-to-face interviews were also used in some ways to complement the data that was obtained from the use of questionnaires. Secondary data used were obtained from textbooks, manuals, journals and publications by the Ministry of Trade and Industry, Bank of Namibia and the Namibia Chamber of Commerce and Industry. Major challenges facing SME‟s implicated by the findings of this study as undermining the smooth operations of SMEs in Namibia cut across finance, training, government regulations, crimes, infrastructures, markets as well as technology. On the some minor challenges hampering the full transition of SME into fully fledged formal business include poor infrastructure and lack of trust from the suppliers. The study concludes that in order for Namibia to realise the full potentials of its SMEs, a lot still needs to be done by the Namibian government, including the private entities.