ENGLISH ABSTRACT: In Namibia the small business sector is seen to play a very important role in the creation of jobs and the growth of the economy. At the same time small enterprises face a wide range of problems, which keep the failure rates of new ventures high and often prevent dynamic business growth. To address these challenges it is insufficient to have a national strategy for small businesses or to just rely on national government and other national bodies. This is particularly important in a country like Namibia which has a small population, stretched over a vast territory, with huge differences in the resources and development patterns of the various regions. Against that background this study focuses on a particular area of Namibia, viz the Erongo Region along the coastal belt. It is Namibia’s best developed region after the central Windhoek/Khomes area, with the two towns, Walvis Bay and Swakopmund, the harbor of Walvis Bay, the Uranium mines and tourism being the foundation for business growth. After reviewing the spectrum of small business support bodies available in Namibia the study looked at a sample of 100 small enterprises in the Erongo area. They were asked about their business engagement, business prospects, main problems experienced and their awareness and utilization of support programmes. These needs profiles were then compared to the set of actual service suppliers found in the Erongo region. This showed that in practice very few of the problems are addressed, largely due to a lack of awareness, pro-activity and cooperation on both sides: local small enterprises and local support suppliers. The study ends with a range of proposals which should, if tackled on a partnership basis and in closer cooperation between the head offices in Windhoek and local bodies, lead to a steady improvement of the SME support process.

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 (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The Goverment of the Republic of Namibia soon after independence, recognised its cardinal national responsibility to change the orientation of the nation's economy from one of exporting raw materials and importing final-use products to in-country production of goods based on the country's resource endowment. One productive sector for which explicit and far-reaching guiding policies, strategies and programmes have been developed and instituted from the beginning is the promotion of highly competitive industries with special emphasis on SMEs as a major pathway to progressive and sustainable industrialisation and employment and the simultaneous development of entrepreneurial culture. In recognition of the critical role the SMEs can play in the socia-economic development and economic diversification of the country, the Government of Namibia through its Ministry of Trade and Industry has put in place policies and programmes, specifically for the development of SMEs. To this end, the Ministry of Trade and Industry realised that the lack of bankable business plans limited entrepreneurs' access to finance and this posed the biggest challenges to the growth of the SME sector in the country. This has been conceived as a daunting factor and stems from the reality that entrepreneurs cannot provide bankable business plans to back up their applications. Given the prevailing condition, the Government of Namibia initiated the MSME Feasibility Studies and Business Plan Support programme ~ specifically geared to assist the SME sector with bankable business plans in order to induce financial institutions to provide loans to entrepreneurs with viable project ideas and prospects for success. The objective of the study is to explore the extent to which this support programme has facilitated the access to finance by SMEs and the creation of sustainable businesses. The findings of the study have established that worldwide some of the developed and developing countries initiated and implemented similar govemmental programmes in the form of subsidies to the services rendered by third parties to SMEs in business-plan formulations and related advisory services. / AFRIKAANSE OPSOMMING: Kort na onafhanklikheid het die regering van Namibia besef dat die landsekonomie minder afhanklik moet word van grondstof-uitvoere en die invoer van vervaardigde goedere, met groter klem op die verwerking van plaaslik vervaardigde grondstowwe. In die verband is kleinsake as 'n belangrike ontwikkelingsinstrument beskou en 'n vername skepper van nuwe werksgeleenthede, wat juis in die uitvoer-georienteerde landbou- en mynbou-sektors aan die kwyn is. Om hierdie herorientasie van die ekonomie te bevorder het die Ministerie van Handel en Nywerheid verskeie programme ontwikkel, veral vir die bevordering van kleinsake. In die verband is die probleem van bankfinansiering as 'n besondere knelpunt beskou , met die gebrek aan omvattende sakeplanne vir finansierbare projekte gesien as kemprobleem. Met die oogmerk het die Ministerie die "SME Feasibility Studies and Business Plan Support programme" ontwikkel, ten einde finansiele instellings te motiveer om meer geredelik finansiering te verskaf. Hierdie studie ontleed die bestaande program, sy agtergrond, ontwikkeling en probleme asook die baie beperkte sukses wat tot sover bereik is. Vergelykings met programme in ander lande suggereer dat verreikende aanpassings nodig is om die program meer betekenisvol en suksesvol te maak

M.Com. (Tourism and Hospitality Management) / The significant role that SMEs play in the economic development of both developed and developing countries is acknowledged universally. In the development of policy relating to the tourism sector international organizations and tourism scholarship on collaboration and partnerships exhort governments to enter into partnerships with the private sector. One stakeholder that is often omitted is, however, the group of Small and Medium Enterprises (SMEs). Only a limited amount of work has been undertaken outside the developed world and sub-Sahara in particular, on issues relating to the involvement of SMEs in tourism policy. In this investigation, a qualitative explorative study was conducted with the aim of providing interpretative and evaluative knowledge on this phenomena. Based on purposive sampling forty key informants of various backgrounds and from different locations in Namibia participated in the study. The results of this research on Namibia contribute to the limited body of literature and knowledge concerning the participation of SMEs in the formulation of tourism policies. The study provides an analysis of the complexity of issues surrounding SME participation in policy formulation. It gives descriptions of the policy process in order to unravel the interaction between the various policy actors, their attitudes and behaviours. The major findings of the study are that in Namibia SMEs are involved in the policy process only in an ad hoc manner. Not only are they less knowledgeable about the policy process and policy content but also they are ignorant of the rules of engagement. The SMEs and interest groups respond to policy formulation as an end goal. The study recommends that SME incorporation in tourism policy formulation should be based on a number of overarching principles and approaches. It is argued SME involvement should be through consultation and empowerment. In addition, an important aspect of local empowerment is the impartation of skills and knowledge that enable SMEs to participate effectively in decision-making beginning with the local level.

Literature on financial statement analysis has been documented by various authors on how the performances of organisations can be measured using financial statement analysis as a tool. Most of the literature focused on what has been written in relating to organisations which are listed on the stock exchange. However, the same principles which are applied in evaluating the performance of large organisations can equally be applied to any organisation; this includes small and medium-sized enterprises operating in Namibia. Despite the fact that financial statement analysis is an important tool for evaluating the performance of organisations, no previous literature was found pertaining to the evaluation of the performance of Namibian small and medium-sized enterprises using this tool. This research will attempt to identify how management of Namibian small and medium-sized enterprises can effectively make use of financial statement analysis as a tool in evaluating the performance of the organisations in order to make correct strategic decisions that will benefit the SMEs.

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.

Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: In a stable economic environment and enabling macro economy, such as Namibia, a small and medium enterprise (SME) sector is vital for the growth and sustainability of the economy. Although several studies have been conducted on SMEs, to the best of the researcher's knowledge, no single study has been conducted with regard to SME development in Namibia with emphasis on the Khomas region. The aim of this study was to explore the progress made, during the last decade in minimising constraints faced by SMEs in key developmental areas, such as access to finance, sound management, business processes, marketing and strategic alliances. In order to adequately address these key developmental areas the research sought to address the following questions: What strategies should SMEs adopt in terms of management, finance, marketing and networking in order to ensure their future viability? What is the institutional capacity from the sample of 50 SMEs in the Khomas region? What are the likely capital and recurrent cost implications with respect to traders wanting to form alliances in the Khomas region? What potential problems are likely to emanate from the SMEs' venturing into the export processing enclave? The government of Namibia, in 1997, recognised the important role SMEs can play in the country's socio-economic development. A number of policy documents were issued to give clear definitions of small businesses and to stipulate government programmes intended to ensure that conditions are favourable and enabling for SMEs' growth in Namibia. This research study explores the impact of the process of development since the passing of the Government SME Policy in 1997. Furthermore, this research looked at policy documents on SMEs, national development plans (NDPs), millennium development goals (MDGs), other developmental goals and government policies relevant to SME development in Namibia. The analysis indicates that the majority (74%) of SMEs in the Khomas region are involved in general dealing, like footstalls, detergent makers and the service industry. According to the Ministry of Trade and Industry (MTI 1997: 29), lack of finance is widely regarded as one of the major obstacles to the development of more advanced small businesses. Most of the SMEs do not have sufficient funds to venture into capital intensive programmes like manufacturing activities. As a result, general dealing becomes a better option since it does not require large sums of money to start operating or to expand current operations. Financial institutions have stringent collateral requirements; therefore access to finance is regarded as a major limiting factor for SME growth in the Khomas region. The survey also concluded that most SME owners act as sole proprietors and try to perform all business operations by themselves. They usually fail to keep financial records, due to ignorance of its importance. As a result most SMEs do not know how much money they have used or profits made. This research investigated, concluded and made recommendations on the factors that have assisted or impeded SME development in Namibia, with emphasis in the Khomas region.

Thesis (MDF)--Stellenbosch University, 2012. / This study was based on a key question: “Are the developing countries putting adequate effort into entrepreneurship education to develop and grow their economies to become developed countries?” Since it is believed that entrepreneurship education is not fully harnessed in Africa, it is imperative to promote entrepreneurship education (EE) in order to enhance economic growth. This could be achieved by educating young people about the principle of entrepreneurship at an early stage and this will promote enterprise creation, job creation and poverty alleviation. Many developed countries acknowledge that enterprises contribute significantly toward the economy of a country. Entrepreneurial development is therefore seen as a potential resource that contributes toward development. According to various entrepreneurship education models discussed in this study, the challenge of entrepreneurship is to create awareness of self-employment and encourage people to develop interest to engage in entrepreneurial activities. Institutions should therefore be created to develop people in the field of entrepreneurship to foster entrepreneurial activities. EE should be presented at primary, secondary and tertiary institutions to encourage more participation at a much earlier stage. This study assessed the impact of entrepreneurship education on entrepreneurial attitude within secondary schools in Windhoek, Namibia and sought to identify the impact of the Junior Achiever Namibia programme (JA NAM) on young learners, who attended the programme 2005 -2010. The study also assessed whether entrepreneurial attitudes were developed and opportunities identified, and whether innovation, enterprise and employment opportunities were created by learners who attended the programme. The study employed both a qualitative and quantitative methodology in the form of a questionnaire to evaluate students’ opinions about the JA NAM programme after attending the programme.

Thesis (MDF)--Stellenbosch University, 2013. / The Small and Medium Enterprises (SMEs) within the construction industry are presenting challenges to both industry and financial institutions in Namibia. The Development Bank of Namibia’s (DBN) investments in the construction industry yield mixed results, which have become worrisome. The percentage of non-performing loans within the construction portfolio continues to rise, hence a suitable contractor-financing model is required in order to advance financial resources and capacitate the contractor for their own development. The challenges of SMEs in construction business point to the need for the integration of knowledge from fields as diverse as business, finance, management and technical skills. This integration necessitates the need to create an enabling environment in which they can persevere. Understanding and experiencing these challenges, this researcher from the Development Bank of Namibia has taken the initiative to establish advanced financial solutions mainly for SMEs in the construction industry through the Bridging Finance Facility (BFF). This research report compiled findings gathered through the investigation of challenges impeding the success of SMEs, with a specific focus on SMEs engaged in the construction industry. A review of their satisfaction levels pertaining to the DBN’s application requirements, the adequacy of the BFF, mentoring, training, and client relationship support were some of the aspects investigated. The report also brought to the fore the bank’s internal lending processes that are currently in place. The main findings revealed that technical capacity, mentoring and training remain key shortcomings faced by SME’s. This matches the bank’s internal credit assessment processes that do not address the assessment of technical capacity sufficiently. The research found that the standard BFF induction program being implemented by the bank, and credit assessment turnaround times remain challenges for the DBN. Interestingly, road contractors were found to be a less risky portfolio group to finance in comparison to building contractors. The objectives of the document are in accord with the DBN’s overall strategic priorities, namely financial sustainability, stakeholder satisfaction and business development. Fundamental to the success of these investigations with the SMEs challenges was the use of the sets of structured questionnaires tailored to a selected sample of road and building contractors, consultants, quantity surveyors and architects as well as interviews with senior management at the DBN.

The development of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was based on the demand for a more simplified financial reporting standard, compared to International Financial Reporting Standards (IFRS). Despite simplifications, the requirements of the IFRS for SMEs are still regarded complex and costly to apply, especially for micro entities in developing countries such as Namibia. Consequently, there is a need to further simplify financial reporting requirements for micro entities in the form of a third-tier financial reporting standard. A third-tier standard can take the form of either a separately developed standard or a simplification of existing standard(s). There are more advantages to the development of a standard based on existing standard(s), taking into account the Namibian financial reporting environment. It is therefore recommended that Namibia develop a third-tier standard based on the IFRS for SMEs. / Financial Accounting / M. Phil. (Accounting Science)