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<\/p>\nAbout 97% of small and medium enterprises (SMEs) in Namibia are considered non-bankable by traditional financial institutions, highlighting structural challenges facing entrepreneurs despite growing interest in the sector.<\/p>\n
This was shared by Namibia Tourism Board chief executive Sebulon Chicalu during a recent entrepreneurship and compliance training programme in Windhoek.<\/p>\n
Chicalu said access to finance remains one of the most significant barriers to SME development, with many entrepreneurs unable to meet basic funding requirements.<\/p>\n
\u201cMany Namibian entrepreneurs fail to secure funding because they are ill prepared.<\/p>\n
\u201cStart-ups often lack proper documentation and a clear understanding of their specific business needs when approaching banks,\u201d he said.<\/p>\n
Chicalu said the high level of non-bankability is linked to the risk profile of start-ups, which often lack collateral and established track records.<\/p>\n
Industry data shows that business survival rates remain low, with a large proportion of start-ups failing within the first few years of operation.<\/p>\n
\u201c. . . often due to cash flow constraints, a lack of financial management skills and limited market access,\u201d Chicalu said.<\/p>\n
Statistics indicate that roughly 90% of SMEs fail within their first five years, while about 75% experience severe difficulties within the first 24 months.<\/p>\n
Chicalu said these outcomes are driven by a combination of limited access to capital, high interest rates, weak financial management and insufficient mentorship.<\/p>\n
\u201cEntrepreneurship without the right skills, support and resilience is not enough,\u201d he said.<\/p>\n
He said Namibia\u2019s small market size, infrastructure constraints and regulatory challenges further limit growth opportunities for emerging businesses.<\/p>\n
Chicalu said addressing these constraints requires targeted interventions focused on financial literacy, compliance and business sustainability.<\/p>\n
\u201cThis training is not just about starting a business. It is about building financial discipline and sustainability, understanding market dynamics, developing bankable business models and strengthening resilience,\u201d he said.<\/p>\n
He said strengthening SME capacity is critical to supporting tourism, which remains a key contributor to Namibia\u2019s economy and employment.<\/p>\n
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