Entrepreneurs' poor access to credit hinders growth

30 May 2016 12:10pm
EENHANA, 30 MAY (NAMPA) – Namibia faces limited growth in the areas of innovation, entrepreneurship and small business development due to entrepreneurs’ poor access to finances.
This is the view of the Executive Chairperson of the United Africa Group, Martha Namundjebo-Tilahun.
She made these remarks whilst officiating at the 2016 Eenhana Trade and Business Exposition (Expo) fundraising gala dinner held at Eenhana in the Ohangwena Region on Saturday.
Namundjebo-Tilahun said poor access to credit is seen to be the biggest obstacle to small enterprises' ability to graduate into medium and large companies.
“However, in the same breath we find a lot of entrepreneurs who squander their funds which results in the failure of their business,” she alluded.
Statistics, Namundjebo-Tilahun said, show that small businesses have only a 37 per cent chance of surviving up to four years and nine per cent of surviving 10 years.
Seventy to 80 per cent of small businesses fail in their first year, and only about half of those surviving remain in business for the next five years.
Namundjebo-Tilahun at the same time urged the business community to take active part in the management of their respective towns, instead of being armchair critics.
She reminded the business community that the responsibility of developing towns equally lies with elected councils, officials and entrepreneurs.
Namundjebo-Tilahun also wants to see the businesses working closely with the local authorities and join forces in pursuing development opportunities in their towns.
“We have a dual responsibility to make our towns and Namibia shine, not just politicians and public servants, but business people too,” she said.
The Eenhana expo will take place from 25 to 30 July.