SMEs are still incertitude in their quest to run their business effectively. These compunctions are lack of access to finance, lack of access to market, lack of growth, poor education, lack of family support and poor business skills. All these determinants hamper the SMEs, which ultimately leads to their failure. Globally, SMEs are engines of expansion because they play a strategic role in poverty alleviation, job creation and wealth provision of regional equilibrium through industrial dispersal and reduction of rural-urban migration. We argue that if much had been done by State to promote SMEs, then the rate of unemployment would be one digit, not two digits in Namibia. The ease of making business in Namibia is appalling rated by WHO as an environment which does not promote and not easy to enhance SMEs growth. The regulatory environment for SMEs is very challenging. There are so many prohibiting procedures for starting a business as a local and foreigner.
The overall research design of this rubric entailed a survey research method and drew from the procedures for researching small tourism businesses in Katima Mulilo. We made cross-sectional study and involved a sample of 14 entrepreneurs that was got between March 2017 and August 2018. Status of growth for Katima Mulilo shows that 0-2% have 10% growth, while 20% had 3-4% growth, 60% of the SMEs had average growth 5-9%. The remaining 20% had high growth of 10-25% status of growth in the company. The component score coefficient matrix shows factor component loadings using the principal component analysis. The factor loadings for individual characteristics, social determinants, poor business location and poor financial management, are very low symbolising that they are poor while human capital and planning and ordaining are higher than 0.40. They are symbolising that they are moderately below par. The principal component analysis is a variable reduction analysis and vital for checking redundancy for the figures. Factor analysis in this study assumes that covariation among the observed variable is due to the presence of one or more latent variables which exert directional influenced observed variables. We recommend that the government should have a National Entrepreneurship Policy Framework and Implementation Guideline and put in place an Entrepreneurial Act to promote Entrepreneurs in the Country.
Table of Contents
1 INTRODUCTION
2 LITERATURE REVIEW
Delineation of SMEs
Theories of Entrepreneurship
Determinants leading to Success or Failure of SMEs
Causes of the failure of SMEs
Growth strategy
Technology adoption
Entrepreneurship Development Programs
Extrinsic determinants
Challenges of SMEs
Entrepreneurial differentia
Marketing
3. METHODOLOGY
Research Design
4 Discussion of Findings
Demographic Variables for the Sample
The determinants that affect the growth development of SMEs
Access to finance
Bootstrapping
Angel Investors
Venture Capitalists
The determinants contributing to the growth of your tourism SMEs in Katima Mulilo?
Marketing the SMEs
Human Resource Management
Financial growth Determinants
ICT growth Determinants
Operations growth Determinants
Determinants which enhance business success
Strategies most important in enhancing performance in your SMEs
Policy Recommendations
Objectives and Topics
This research aims to identify and analyze the key determinants affecting the growth and development of Small and Medium Enterprises (SMEs) within the tourism sector in Katima Mulilo, Namibia, by investigating the barriers to success and the impact of strategic planning on business performance.
- The influence of financial access and capital availability on SME survival and growth.
- The impact of human capital, training, and management skills on entrepreneurial success.
- Strategic planning, operations management, and the role of innovation and technology adoption.
- The regulatory environment and its effect on business development and government policy effectiveness.
Excerpt from the Book
Ineptitude to Manage Growth
Another challenge that causes the non-performance of SMEs is their ineptitude at managing growth. SME owners find it multifarious to manage their enterprise as they grow due to the deficiency of pecuniary training and managerial experience or skills (Mark, 2014). Growth in any enterprise places inexorable pressure upon its resources and sometimes necessitates SMEs to acquire resources, which deep SMEs, in many instances, into inexorable cash flow challenges that finally lead them to failure. Evans (2015) contends that the latter precludes SMEs from growing to full potential, as they are incapable of attaining the necessary resources and leads to SME liquidation. Hull (2013) also articulates that a deficiency of focus (prioritising) by SME owners or administration can result in catastrophe. Deficiency of prioritising is often a real challenge for an entrepreneur in an SME, as there is a normal variation in priorities, issues that need attention and other issues that require rectification (Hull, 2013). Often, opportunities present themselves, and it is complicated to say “no” to a short-term opportunity that will confuse SMEs from their long-term goals. SMEs should be crystal clear on their long-term objectives and the opportunities that will enable them to attain these objectives. SMEs should assess other opportunities based on the degree to which they draw resources away from their aptitude to attain their long-term goals (Evans, 2015).
Summary of Chapters
1 INTRODUCTION: Discusses the global importance of SMEs in economic development and outlines the specific challenges and research focus regarding the Namibian tourism sector.
2 LITERATURE REVIEW: Examines theoretical frameworks, definitions, and international perspectives on success and failure factors for small enterprises.
3. METHODOLOGY: Details the research design, including the mixed-method approach and the survey conducted among tourism entrepreneurs in Katima Mulilo.
4 Discussion of Findings: Analyzes demographic variables, financial determinants, and strategic factors influencing SME growth based on collected data.
Keywords
Determinants, Growth, Small Medium Enterprise, Tourism, Namibia, Katima Mulilo, Entrepreneurship, Finance, Human Capital, Innovation, Business Strategy, SME Policy, Infrastructure, Operations Management, Business Success
Frequently Asked Questions
What is the core focus of this research?
The research fundamentally investigates the primary determinants that influence the growth and success of Small and Medium Enterprises (SMEs) specifically within the tourism industry in Katima Mulilo, Namibia.
What are the central thematic areas of the study?
The study centers on financial constraints, the necessity of management skills, human capital development, the importance of strategic planning, and the regulatory environment impacting business operations.
What is the primary objective of this work?
The main objective is to identify the critical success and failure factors for tourism SMEs and to propose evidence-based policy recommendations for government support and SME development.
Which scientific methods are utilized?
The study employs a quantitative research method within a mixed-method framework, involving a cross-sectional survey of 14 entrepreneurs in the Katima Mulilo tourism sector conducted between March 2017 and August 2018.
What topics are covered in the main section?
The main section covers detailed discussions on demographic variables, access to finance (including bootstrapping and venture capital), the role of technology, marketing strategies, and the impact of business planning on growth.
Which keywords characterize this work?
The research is characterized by keywords such as Determinants, Growth, Small Medium Enterprise, Tourism, Namibia, Katima Mulilo, Finance, and Human Capital.
How does the lack of business plans affect SME performance in Katima Mulilo?
According to the findings, the lack of business plans is a significant hurdle, as 40% of surveyed SMEs did not start with a plan, which complicates their ability to manage long-term objectives and strategic growth effectively.
What role does the Namibian government play according to the research?
The research suggests the government currently provides an environment that is challenging for SMEs due to prohibiting procedures and limited policy support, recommending the implementation of a National Entrepreneurship Policy Framework to improve conditions.
- Quote paper
- Prof. David Mpunwa (Author), Clive Chikusi (Author), B. Mvula (Author), 2020, Determinants of Growth for Small and Medium Enterprises in Namibia, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/535364
