Although Namibia is working towards Vision 2030, the major challenge to get more people involved in the small and medium-sized business sector. When changing the mindset of people in Namibia, it requires full acceptance and incorporation (both at an individual and business sector level) of the business principles and fundamentals. This involves a paradigm shift of culture or attitude of taking up a job or any small business activity, even if it is only for subsistence reasons. This will require taking full ownership, exhibiting entrepreneurial behaviour and feeling challenged by one’s own goals, rather than only having the desire to earn money. SMEs that fit in Namibia’s economy would be of interest to new entrepreneurs if they have made a mind shift and have proven that they are competent before going into business. This will require aspiring entrepreneurs to become acquainted to business principles at a young age to take one step closer in a positive direction.
Other challenges for Namibian entrepreneurs include attaining collateral from banks to start their business. Most people find themselves at the bottom of the pyramid in terms of income and so simply being able to start a business is a challenge for most citizens. The Republic of Namibia is a country with 11 different ethnic groups, and each of these groups has their own cultures and traditional belief systems. According to April (2009) 1 there are numerous cultural factors that prohibit even youth from entrepreneurial education. These are, amongst many others and not limited to young women usually being seen as housekeepers and having to get married and bear children for their husbands. Another critical challenge is that Namibian communities usually have large extended families, and even when people start an enterprise they mostly fail to follow the basic business principles, as family values hold precedence over business values. This can usually lead to closure of the business within the first few years of being established. It is the notion of some communities that entrepreneurship interferes with their traditional system, and that there could be a better manner through which they can be incorporated into the national economy.
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