Determinants Of SMEs Performance In Windhoek,Namibia

In developing countries,Small and medium enterprises(SMEs)play a vital role in nurturing socio-economic development.They create employment opportunities,empower communities and make positive contributions towards GDP of the country;this research aims to investigate the determinant factors that affect the performance of SMEs in Windhoek,Namibia.A mixed method design involving both quantitative and qualitative research methods was used for this study.Forty two self-designed questionnaires were prepared and only forty two SMEs were interviewed.Data were collected through questionnaires to get information from SMEs as well as interviews with senior officials from the two SMEs supporting institutions namely;the Namibia Chamber of Commerce and Industry and the Ministry of Industrialization,Trade and SME Development.Quantitative data collected were analyzed by means of descriptive statistics using SPSS and results were presented through figures,tables,charts and summaries.It was identified that the economic environment in which the SMEs operates its neither good nor bad,and this was supported by the prior studies in Namibia on contrary etc.Various studies on the factors that adversely affect SMEs performance were reviewed and the theoretical framework was derived from the findings of the studies.The land issue in Namibia is on the spotlight,were low income persons cannot afford to buy.The costs of existing properties are skyrocketing now and then;and renting a business premise is very expensive.Another challenge is access to finance.This specific problem has demoralized many SMEs,some decided not to apply for loan from banks but to get startup capital or expansion capital from family and friend,the study found out that Substitute products from other suppliers,Marketing orientations,Number of potential input suppliers,Start-up Capital,leaders in the market,external environment,and competitions are the most factors that adversely affect the performance of SMEs in Namibia.The research concluded by giving suggestion on what should be done to improve the performance of SMEs in a vibrant business environment.