Start-ups, MSMEs need nurturing

Starting a business is not easy, but what makes it more difficult is the fact that one has to start a business in an environment where you have to comply with all policies that are applied to all existing businesses in your category.

It is with sadness that I tell the Namibian community that we have a big problem when it comes to startups’ support. As a country and the government, we are so much into hosting conferences, workshops and meetings among ourselves as mandated stakeholders where we spend a lot of funds on administration of transport, S&T and accommodation but after the meeting, we file the minutes and tell the same beneficiaries that we were supposed to serve that the budget is not enough to carry out our mandates.

I cannot stop re-emphasising that we need to look at the start-up business sector with a microscope because we are really missing a point somewhere. The country’s economy is not only built by the macro business sector but it is with the effort of all macro, start-up and MSME sectors combined. Start-up businesses are crucial because they give birth to macro business in the future.

My point is that I want to raise awareness to all the agencies with a mandate to build the business sector to start revolutionising their approach to how they support the business community.

Just like at school, one need to start from kindergarten, pre-primary school, primary school, secondary school and then university. We need to take a deliberate and conscious decision to strengthen policies that will support businesses with a clear term of reference on how they will support start-up business at their infant stage until they become fully operational companies.

This is possible if MSME Development Bank is brought back and regulated as a parastatal. We need to reassess the current funding strategy of commercial banks to issue out loans to MSME businesses.

Commercial banks’ priority is profit and an MSME Development Bank’s priority is to stimulate and support business development and grow companies to create employment for the nation at large.

Hence, commercial banks are not likely to fund start-ups due to their requirements and stiff terms and conditions. Start-ups need a new policy framework that will support them with equipment and funds to ensure the business start operating, while a monitoring and evaluation system, that will force owners to comply to set standards of business management, is applied.

I, therefore, submit to the Namibian government, business society and stakeholders: Let us hold hands and consciously and intentionally strategise to provide support and resources to start an MSME Development Bank.

It should be reinvented and expand its services to include mentorship and management skills training to empower entrepreneurs to start business in the right way and ensure their businesses become successful.

There is a gap as business are only recognised after they have already made it but there is no division or framework created only to support start-ups and micro businesses during their infant stage.

We can do it but we need all stakeholders to come together with conscious minds and a will to address the real issues on the ground. We need to prevent hosting conferences, workshops and meetings every year where we spend funds but go back to the offices and continue business as usual while the intended beneficiaries continue to suffer.

We need to be proactive if all institutions established to support the business community are to achieve their mandates.