Critical factors that influence the success and failure of SMEs in Namibia in the Khomas Region

April, Wilfred Isak (2005-12)

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.

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