Critical factors that influence the success and failure of SMEs in Namibia in the Khomas Region

This study seeks to analyse the critical factors that influence the success andfailure of Small Medium Enterprises (SMEs) in Namibia in the Khomas Findings of the study indicate that there is a problem of business failure in theKhomas Region. Although business owners of successful and unsuccessfulbusinesses recognise the support from the government, most unsuccessfulbusiness owners feel that the lack of proper governmental assistance is stillone of the most critical factors that led to failure.Finally the major recommendation of the study highlights the issue that thegovernment should come up with strategic measures (such as businessincubators) that will prolong the survival of SMEs.Region. To achieve this, the objectives of this study are to confirm whetherthere is a problem of business failure in Namibia in the Khomas Region. Thiswill be done by identifying the causes of the problems and to search forpractical solutions, given the causes of the problems. It is important that theproblems associated with business success and failure be understood.Through an analysis of theoretical information and empirical results it ispossible to establish how to facilitate more innovative and effectivedevelopment that is much needed in developing countries, such as Namibia.From the literature it became clear that there are numerous advantages anddisadvantages associated with operating an SME. There will be alwaysdisadvantages for which we may never find solutions. Despite this, it isevident that SMEs are crucial for the development of any country, as theyoffer benefits such as subcontractors for larger organisations, economicgrowth and employment generation.Data were colleted from respondents by means of forty structuredquestionnaires (twenty for successful firms and twenty for unsuccessful firms)consisting of 23 questions (plus three open-ended questions). Nineteen ofthe questionnaires were returned of which twelve were from successful firmsand nine from unsuccessful firms. The sample was drawn from a list of all theSME owners in Namibia in the Khomas Region.