By Edgar Brandt
WINDHOEK – Small and Medium Enterprises (SMEs) should be nurtured at all levels to cement their strategic role in development.
This is according to the Deputy Minister of Trade and Industry, Tjekero Tweya, who said the trade ministry had various programmes and facilities in place to assist the SME sector to establish and grow their businesses.
“These programmes are aimed at assisting entrepreneurs with business plan formulation, conducting of feasibility studies, providing mentorship services and business, managerial and technical training. Provision of equipment, facilitation of securing markets and improving the quality of local products and services just to mention a few,” said Tweya.
Tweya, who was speaking at the recent opening of the Diamond Festival in Oranjemund, said it was a known fact that most small businesses failed within their start-up stages of operation due to under capitalisation and lack of proper management skills.
“To overcome the prevailing situation, our ministry has throughout the country constructed SME business parks or market facilities which we are gradually converting to incubation centres.
“We are further constructing industrial parks, warehousing and in future also specific manufacturing facilities as our contribution to enhancing value addition to raw materials and increasing our manufacturing capacity,” said Tweya.
He said the ministry’s support for SMEs was meant to ensure effective participation by small businesses in an environment where they can share experiences and conduct business with each other, thereby reducing the inherent risks applicable to business start-ups.
“Through interaction, SMEs develop increased awareness of and access to information on support services available to them and gain access to facilities and equipment otherwise unavailable or unaffordable and as such increase visibility and presence in the marketplace,” he said.
He said SMEs at such facilities pay below market rent and share reduced building maintenance responsibilities, resulting in job creation, retention and increased output and revenue.
“Our interventions should be the vehicle for the private sector to be creative and innovative through adding value to our natural resources and thus creating jobs and improving the living standards of our people,” Tweya said.
To date the Ministry of Trade and Industry has invested more than N$28 million in the construction of SME parks in the country. In addition, through the Equipment Aid Scheme, the ministry has assisted close to 1 300 entrepreneurs with equipment valued at over N$115 million during the last two financial years. These beneficiaries have reportedly created over 3 000 jobs throughout the country.