Approximately 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, according to the Namibia Tourism Board (NTB).
The findings were presented by NTB Chief Executive Officer Sebulon Chicalu during an entrepreneurship and compliance training programme in Windhoek.
Chicalu said access to finance remains one of the most significant barriers to SME development, with many entrepreneurs unable to meet basic funding requirements.
“Many Namibian entrepreneurs fail to secure funding because they are ill-prepared. Start-ups often lack proper documentation and a clear understanding of their specific business needs when approaching banks,” he said.
He noted that the high level of non-bankability is linked to the risk profile of start-ups, which often lack collateral and established track records.
Industry data shows that business survival rates remain low, with a large proportion of start-ups failing within the first few years of operation.
“A significant proportion of start-ups fail within the first three to five years, often due to cash flow constraints, lack of financial management skills and limited market access,” Chicalu said.
Statistics indicate that roughly 90% of SMEs fail within their first five years, while about 75% experience severe difficulties within the first 24 months.
Chicalu said these outcomes are driven by a combination of limited access to capital, high interest rates, weak financial management and insufficient mentorship.
“Entrepreneurship without the right skills, support and resilience is not enough,” he said.
He added that Namibia’s small market size, infrastructure constraints and regulatory challenges further limit growth opportunities for emerging businesses.
Chicalu said addressing these constraints requires targeted interventions focused on financial literacy, compliance and business sustainability.
“This 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,” he said.
He emphasised that strengthening SME capacity is critical to supporting tourism, which remains a key contributor to Namibia’s economy and employment.
