Small and medium-sized enterprises (SMEs) make up an important part of the Namibian economy. SMEs contribute 12% to the Namibian GDP and employ an estimated one fifth of the workforce. To ensure that Namibia reached its goals of Vision 2030 a number of entrepreneurial programmes have been introduced in the country. These programmes are catered for in both formal and informal ways. The formal programmes constitute the official introduction of entrepreneurship at a secondary school level, where students can bridge to start or set up a business of their own after their high school career. There are also vocational training centres where Namibians get a first-hand opportunity to upgrade their entrepreneurial skills to start a business venture of their own.
Fostering entrepreneurial education in any economy is critical as it will lead to creative manpower and a successful workforce with better skills to meet the demand of the economy. It is the argument of the author that the major obstacle for growth in developing economies such as the Republic of Namibia is a lack of educated entrepreneurs who are able to mobilize and coordinate production inputs. Financial institutions cannot afford to lend money to uneducated or uninformed entrepreneurs as it will seem as if they are throwing money away or making a negative investment. It is the viewpoint of the author that it is not only financial skills which are lacking, but also general knowledge, ability and skills that entrepreneurs need to possess in today’s competitive global market. This can also take us back to the scholarly argument as to whether entrepreneurs are born or bred – with genetic and environmental conditions that could make them destined for entrepreneurship. However, Kent (1990) has put succinctly that education can make a difference to the supply of entrepreneurs in developing economies such as Namibia. This view is slightly different from the views of Freire (1997) when we look at informal education.
The study of entrepreneurial education around the world is still in its infancy (Brazael and Herbert 1999). In a similar view, Namibia as a nation has only recently started to introduce entrepreneurial education across the various sectors of the economy. However, if Namibia as an economy aspires to become competitive in the African market and around the globe, entrepreneurship is a viable option. Brockhaus (2001) 1 noted that the first course in entrepreneurship was introduced in 1957 at the Harvard Business School. Drucker also taught another course at New York University in 1953. Surprisingly it was only during the last two decades that entrepreneurship has been formally introduced in academia for example, the Babson School of Entrepreneurship in Babson, Massachusetts. The first doctor of philosophy graduates in entrepreneurship emerged in 1981 in the USA at Babson. It is possible to agree with Timmons (1988) 2 that entrepreneurship is also about the ability to create something from nothing. It is also about initiating, doing and achieving, and goes beyond just watching the creation of a new venture by establishing a business in the practical sense. Entrepreneurship education can have a strong bearing on the development of entrepreneurs in Namibia. Namibia has set up various centres such as the Namibian Business and Innovation Centre to help with the grooming of entrepreneurs in Namibia. The University of Namibia and the Polytechnic of Namibia offers entrepreneurship as a course, but have not established standalone degree programmes. There are also entrepreneurial training courses offered at accredited smaller training institutions in Namibia. The teaching of entrepreneurship in Namibian tertiary institutions is critical as it can be seen as a response to overcome the legacy and educational systems of the colonial past. It is also a move to stimulate entrepreneurial thinking amongst Namibian citizens.
A number of activities have recently been undertaken in order to stimulate the growth of the SMEs in Namibia. This support is usually in managerial and financial form to train people to become entrepreneurs. Namibia has a policy on small business development. in the early 2000s it appeared that the net growth by jobs created and lost was more positive in the economic clusters of body care, healthcare, hospitality, tourism and crafts, and much less in the electronics, manufacturing and consulting sectors. After been trained in the entrepreneurial sectors, most entrepreneurs prefer to work in hospitality and tourism. They prefer this because these businesses are relatively easy to enter and they try to avoid risks. This reveals that some Namibians are moderate risk takers. However, these jobs require less innovation. Some of the core reasons as to why entrepreneurs do this are a result of their personal characteristics. A lack of psychological success factors and a lack of desire to take initiative in the decision-making process is also a hindrance to some Namibian entrepreneurs. When the author looks at Namibian people, entrepreneurial development can be predicted on three levels. Entrepreneurial education in Namibia should enable the citizens of the country to develop certain technical skills that they would like to exploit as self-sustaining entrepreneurs, but might not have the entrepreneurial skills and they might develop a sense and an aspiration for entrepreneurship. Some of them might develop an entrepreneurial attitude and behave accordingly. In Namibia most entrepreneurs have to be trained in crafts, and more so in entrepreneurial skills such as marketing, record keeping, and employee personnel, among others. All organizations in Namibia play different roles in the development of the economy; for example the Centre of Entrepreneurial Development (CED) at the Polytechnic of Namibia. A major challenge for upcoming entrepreneurs in Namibia is the change of mindset from having skills to becoming a competent entrepreneur. This will require a lot of input from all stakeholders. In addition, local banks in Namibia such as Bank Windhoek are providing mentor skills training this regard, and there are a number of consulting firms providing similar services. Training mentors enables help people to become self-reliant and independent entrepreneurs and self-sustaining business people who might eventually start their own businesses. According to the NIED Report (2006) 3 some educational institutions such as the Polytechnic of Namibia realized the national aim of the Republic of Namibia to increase the number of SMEs; thereby, Namibians are encouraged to play a part and inspire young people at an earlier stage of their careers to change their mindsets and consider entrepreneurship as a viable career option. Primary school learners should also be encouraged, and should be informally exposed to entrepreneurial activities within their respective communities. It is also very important to highlight in this chapter that the informal sector in Namibia booms with entrepreneurial initiatives under a local bridge at Wernhill Park shopping. People make an effort to sell whatever they are able to in order to sustain their livelihoods and family. The next section of this chapter deals with entrepreneurial challenges in Namibia.
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