Thesis (MDF)--Stellenbosch University, 2013. / ENGLISH ABSTRACT: There is general consensus that small and medium sized enterprises (SMEs) play a formidable role in contributing to employment creation, domestic and export earnings, and poverty reduction (OECD, 2004). They are therefore extremely important to the development of nations (particularly developing countries), as they constitute the bulk of economic contributors outside of agriculture (OECD, 2004). However, SMEs face a number of challenges as they work to realise these important contributions. Aside from the financial constraints that often mar the success rate of SMEs, several non-financial factors hinder their development and their ability to contribute to national development. Non-financial issues include access to markets, technology and training; sectoral support, business networking, and access to information and advice (Thomas, 2003). Based on the important role that SMEs play in developing economies, however, it is crucial that they receive the support needed to help them to succeed, through the provision of business development services. While the financial aspect of SME success is important, their non-financial needs should also be addressed to ensure the holistic survival of SMEs (European Commission, 2009). The role and development of adequate non-financial business development services to either complement financial resources, or to mitigate the lack thereof, is therefore imperative (International Finance Corporation, 2010). This research report explores the gap that currently exists between the financial and non-financial business development services that exist for SMEs in Namibia; and analyses how non-financial services can be enhanced and marketed, to complement financial services that currently exist, and of which SMEs are aware. The report assesses how SMEs can become better aware of, and best utilise business development services to promote their growth objectives. A quantitative and qualitative analysis of SMEs and Business Development Services (BDS) providers in Namibia is conducted, using a survey and questionnaire, and drawing on a literature review. Finally, the report provides a set of recommendations, based on international best practices, of business development instruments needed to transform the SME sector to promote long term sustainability. This research report finds that SMEs need to become better aware and make use of non-financial BDS support to realize the growth objectives of their businesses. The researcher recommends that government and NGOs streamline their support of BDS providers, to being more facilitative and less prescriptive. Additionally, it is recommended that incubation centres adopt best practices in terms of incubator creation, process and performance assessment; that sectoral support and industrial clusters for technical-know-how is promoted; and that BDS suppliers provide context-specific training in order to enhance the effects of training provided. Further recommendations include the promotion of BDS to the general public to increase awareness of the importance of these services; the harnessing of BDS in Namibia’s financial institutions for a more complementary approach; and the formation of a National SME Agency to oversee and facilitate the effective provision of business development services.

Thesis (MComm (Business Management))--University of Stellenbosch, 2005. / This study seeks to analyse the critical factors that influence the success and failure of Small Medium Enterprises (SMEs) in Namibia in the Khomas Findings of the study indicate that there is a problem of business failure in the Khomas Region. Although business owners of successful and unsuccessful businesses recognise the support from the government, most unsuccessful business owners feel that the lack of proper governmental assistance is still one of the most critical factors that led to failure. Finally the major recommendation of the study highlights the issue that the government should come up with strategic measures (such as business incubators) that will prolong the survival of SMEs. Region. To achieve this, the objectives of this study are to confirm whether there is a problem of business failure in Namibia in the Khomas Region. This will be done by identifying the causes of the problems and to search for practical solutions, given the causes of the problems. It is important that the problems associated with business success and failure be understood. Through an analysis of theoretical information and empirical results it is possible to establish how to facilitate more innovative and effective development that is much needed in developing countries, such as Namibia. From the literature it became clear that there are numerous advantages and disadvantages associated with operating an SME. There will be always disadvantages for which we may never find solutions. Despite this, it is evident that SMEs are crucial for the development of any country, as they offer benefits such as subcontractors for larger organisations, economic growth and employment generation. Data were colleted from respondents by means of forty structured questionnaires (twenty for successful firms and twenty for unsuccessful firms) consisting of 23 questions (plus three open-ended questions). Nineteen of the questionnaires were returned of which twelve were from successful firms and nine from unsuccessful firms. The sample was drawn from a list of all the SME owners in Namibia in the Khomas Region.