SME development in Windhoek

Topics: Business, Windhoek, Namibia Pages: 7 (2421 words) Published: October 9, 2013
AN EVALUATION OF EDUCATION AND TRAINING ON SME DEVELOPMENT AT THE CITY OF WINDHOEK A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT
OF THE REQUIREMENTS FOR THE POST GRADAUTE DIPLOMA OF
BUSINESS ADMINISTRATION
OF
THE UNIVERSITY OF NAMIBIA
BY
LUCAS RUMINGU SINDERE
APRIL 2013
Main Supervisor: Mr. Albert Kamuinjo
Co-supervisor(s): . .......................

Introduction
1.1 Orientation of the proposed study
In many developing countries with Namibia not an exception, SME’s play an important role in contributing to economic development. Small and medium enterprises play a central role in employment creation, providing of goods and services and growth of an economy, as well as the reduction of poverty. Most developing countries are faced with challenges such as high unemployment rate, lack of infrastructure, high dependence on imports of goods and low export, thus governments in these countries put up measures of tackling this challenges and one of the main economic drivers is SME’s development. Asli Demirguc-Kunt in her blog on blog.wolrdbank.org states that “these days, job creation is a top priority for policy makers. What role do small and medium enterprises (SMEs) play in employment generation and economic recovery? Multi-billion dollar aid portfolios across the countries are directed at fostering the growth of SMEs.” This is an indication that most countries have realised the importance of SMEs towards job creation thus the reason for many of them investing heavily in their development. “SMEs are the major growing force behind the fastest growing economy of China, in terms of contribution to the national GDP (accounting for 40%), scale of assets, diversification of products, and creation of employment” (Bashir,2008.). Windhoek with an estimate population of 322 500 (Censes, 2011) is the political and administrative head of Namibia has seen a significant increase in the establishment of SMEs over the past decade. The city of Windhoek has invested in setting up structures such as industrial stall in places such as Khomasdal, Katutura, Wanaheda and Menarovhndu were SMEs which specialises in manufacturing, steel refinery, joinery, motor repairs, welding, panel beating, painting, upholstery, joinery and textile service. These four stalls managed by the city accommodates a total of 151 traders and in addition to this ones, there are those that chose to rent other spaces to conduct business or work in their back yards at home. Although huge investments are done in the areas of SMEs development, there is research or indication as to how much effort different stakeholders are putting on education and training of these SMEs. 1.2 Statement of the problem

SMEs contribute immensely to GDP and employment creation with figures from surveys indicating a 12% and 20% respectively according to the Bank of Namibia 2010 report on SME development in Namibia. As drivers of economic growth, resources should be invested in the education and training of SMEs in different areas in order for them to reach their full potential. This study will investigate as to whether there in enough mentoring, training, counseling being done to help enhance the way SMEs conduct their business. The study will further try to establish whether there are enough opportunities for exchange and networking with other SMEs in the world. One of the major constraints face by the SMEs is lack of business skills and knowledge. People come up with good business concepts, develop them into businesses but this business struggle to reach a life span of 5 years, this is due to lack of proper training on understanding the business module in which most SMEs operate in. Many go into starting up a business with a lack of understanding though they might have a great business idea, it is therefore important that they are time and again trained in different business related matters, create an environment in which they are able to learn from others who have done well both...
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