Challenges That Inhibit The Development Of The Small And Medium Enterprises In Namibia

ABSTRACT

This research paper focused on the constraints that inhibit the development of the Small and Medium Enterprises (SMEs) in Namibia. Due to high unemployment rate and wide gaps of income in Namibia, SMEs development was identified as a means of creating employment opportunities for people with low levels of education and training, who are the majority of the country’s population. Specific policies and strategies were designed for active promotion of the SMEs, but still there is a slow response of the SMEs to the policy and programme incentives. The objective of the study is to determine the reasons behind the slow response of the SMEs in Namibia to the policy and progamme incentives aimed at promoting their development. The study used both secondary data and primary data generated through face to face interviews. The study concludes that the biggest issue facing the SMEs is poor implementation of the policies and programmes, which leads to the lack of capacity and skills in the sector. The government is therefore urged to ensure that it addresses the constraints that inhibit the SMEs development, to ensure that the sector plays its role in social and economic development of the country.