In Namibia, the youth comprise more than 70% of the population and face a range of challenges, such as high rates of unemployment and limited access to quality education. To tackle this problem, the Namibian government has set aside N$257 million to support youth entrepreneurship.
It is essential to understand that youth entrepreneurship in Namibia is a powerful force for social change, job creation, and economic development, not just a way to survive. The ability of Namibian youth to start businesses and fight unemployment is one of their key entrepreneurial strengths. According to the latest statistics from the Namibia Statistics Agency (NSA), youth unemployment in Namibia is about 45%, highlighting a significant issue. Since there aren’t many job opportunities in the formal economy, Namibian youth can create their own jobs. My mini-research shows that at least half of young people, including those with school-leaving certificates and university graduates, are unemployed.
This suggests that entering the workforce at a young age is more challenging and that our economy cannot absorb the large number of graduates from our higher education institutions. According to the 2023 census, only 547 000 of the 1.88 million people of working age are employed.
Small and Medium Enterprises (SMEs) are a vital part of Namibia’s economy. It is estimated that in Namibia, small and medium-sized enterprises constitute 30%, or 70 000, of the total 230 000 registered businesses. Surprisingly, SMEs employ about 36.5%, or 200 000, of the 547 000 workforce, and their total economic output accounts for roughly 12% of GDP. Youth entrepreneurship will significantly contribute to job creation, innovation, food security, and poverty reduction across all 121 constituencies.
Their success or failure has implications for Namibia’s overall GDP. According to the European Journal of Research and Reflection in Management Sciences, African SMEs make up 95% of all registered enterprises and generate approximately 50% of Sub-Saharan Africa’s combined GDP.
Furthermore, the limited involvement of young people in the recently approved National Youth Fund, which has been allocated N$257 million, needs to be monitored. Currently, only 187 young people have applied, with many struggling to develop acceptable business plans and financial projections. Some are also unable to pay consultants due to lack of funds.
It is important to recognise that many young people lack new or bankable ideas, often focusing on traditional businesses like barbershops or hair salons.
This is a serious issue because some young people are not well informed, and the system has not adequately prepared them to think creatively or generate employment opportunities. Many university curricula are outdated, producing graduates with degrees that do not meet current job market demands or foster an entrepreneurial mindset. To address this, a transformation of the school system is needed to include entrepreneurship programmes, practical skills training, and hands-on experience to promote job creation and tackle ongoing issues of unemployment and underemployment. Having access to opportunities, support, and information that can lay the groundwork for success is just as important as revenue generation in youth-driven business. Despite the apparent challenges, optimism persists in the form of group effort. To provide young entrepreneurs with the tools they need to turn their ideas into successful businesses, governments, the private sector, and society at large must all play a part. Despite this, young entrepreneurs need to actively seek out opportunities and build networks. They can create a future where everyone has the right to access opportunities, rather than it being a privilege. Only a small number of SMEs in Namibia survive, which is unfortunate, but I believe young entrepreneurs will be more innovative and expand their product offerings.
Furthermore, it is vital to remember that when submitting your funding request, you should include working capital along with enabling assets for at least three months to cover operating expenses such as payroll, rent, petrol, and other costs.
This is essential because you still need to launch the company, and it is impossible to earn enough revenue to cover all operating expenses while also putting in the extra effort required to repay the loan after the 12-month grace period. Budgeting is a key part of the loan application process, so young entrepreneurs should keep this in mind. Developing a thorough yet practical budget will demonstrate your financial responsibility, profitability, and potential for growth.
There is no need to submit a poor-quality business plan, as the analyst will review your information to assess your ability to manage cash flow, pay off debt, and sustain expansion. A solid budget will position your company for long-term success and improve your chances of securing funding. Therefore, the projected cash flow should be realistic.
Namibia’s National Youth Fund (NYF) can be a valuable start, but success depends on young entrepreneurs focusing on small, consistent actions, setting realistic goals, finding mentors, and building resilience—all vital for long-term success. Quality growth support helps high-potential young Namibians refine their business models, boost leadership, and increase investment readiness. Entrepreneurs need a strong cash flow strategy, monitoring all income and expenses, understanding cash flow versus revenue, and maintaining reserve funds for tight times.
Many ignore cash flow, risking failure despite profits.
To save funds, avoid buying cars until the business is stable, as early costly purchases can divert resources from essential growth tasks and threaten sustainability.
Namibia can unlock its youth’s potential by supporting youth-led initiatives that foster innovation and economic growth. The youthful entrepreneurial spirit symbolises hope, resilience, and a better future for Namibia.
*Josef Kefas Sheehama is an independent economic and business researcher.