Banks must set up divisions for SMEs

WINDHOEK – A businessman and member of the Namibia Chamber of Commerce and Industry (NCCI), John Endjala, has called on financial institutions in the country to set up departments to specifically deal with the Small and Medium Enterprises (SMEs).

Endjala, who was speaking at the launch of an SME competition called EnterPrize 2007 by Old Mutual Namibia yesterday, expressed concern about financial institutions assisting SMEs in drawing up their business plans. He said most of the times the SMEs are referred to consultants in banks who eventually draw up business plans for them (SMEs) that are written in a language not understandable to SME owners.Another problem faced by the SMEs, he added, is funding for growth so that the economy of the country could also grow.He said although the Development Bank of Namibia (DBN) was established to assist in the funding of SMEs, it does not serve that purpose.Endjala further noted that corporate companies in the country invite big tenders of up to N$1 million, making it difficult for SMEs to participate.He further called on Government to consult and involve SMEs whenever drafting and passing legislation affecting small business.”Like putting up of two toilets by shebeen owners, is there funding for them to put up two toilets? If you want to change to something, you must help the people,” he noted.The rapid growth of Chinese businesses in the country is another concern raised by Endjala, who said the Chinese business people have a strong economy back home and therefore are very good in doing business.Endjala called on all businesspeople in the country to cooperate and communicate on issues that affect them, while also calling on the SME sector to employ graduates from Namibian tertiary institutions.NampaHe said most of the times the SMEs are referred to consultants in banks who eventually draw up business plans for them (SMEs) that are written in a language not understandable to SME owners.Another problem faced by the SMEs, he added, is funding for growth so that the economy of the country could also grow.He said although the Development Bank of Namibia (DBN) was established to assist in the funding of SMEs, it does not serve that purpose.Endjala further noted that corporate companies in the country invite big tenders of up to N$1 million, making it difficult for SMEs to participate.He further called on Government to consult and involve SMEs whenever drafting and passing legislation affecting small business.”Like putting up of two toilets by shebeen owners, is there funding for them to put up two toilets? If you want to change to something, you must help the people,” he noted.The rapid growth of Chinese businesses in the country is another concern raised by Endjala, who said the Chinese business people have a strong economy back home and therefore are very good in doing business.Endjala called on all businesspeople in the country to cooperate and communicate on issues that affect them, while also calling on the SME sector to employ graduates from Namibian tertiary institutions.Nampa