Report indicates strong growth in SME sector

THE formal private sector should avoid “economic discrimination” but instead assist the informal private sector, the Small and Medium Enterprises sector (SMEs), for the economic development of the country.

This was said by the Deputy Minister of Trade and Industry, Bernard Esau when he launched the SMEs Impact Assessment Report for 2003, by the Joint Consultative Committee (JCC) in Katutura yesterday. Esau said the importance of the SME sector could not be over-emphasised, adding that this sector which contributed 11,01 per cent towards the national gross domestic product (GDP) of 2003, needed all the help it could get from both the Government and the private sector.”It should be noted that the formal sector of our economy should start intensifying their efforts in extending a helping hand to the SME sector.”The formal sector could assist in the provision of training in financial and business administration, as well as the provision of credits to viable SME operators.The SME sector needs our assistance in all aspects,” said Esau.He added that the Government would continue aiding the SMEs by providing programmes and facilities.The small business sector already contributes above 10 per cent to the GDP, an increase from 8,43 per cent in 2002; the recording of an increase is which is noted as significant.The SME sector in Namibia has been growing and its contribution to the country’s gross domestic product (GDP) has increased ever since Independence in 1990.The report states that the National Development Plan 2 (NDP2) GDP target for the sector for 2006, was already accomplished in 2003.The SME sector share of labour force went up by nearly 25 per cent, and its share of investment increased by 70 per cent and reached 8,54 per cent of total Gross Fixed Capital Formation.Commenting on the increase the report read: “An increase in investment over the last 12 months is encouraging since it raises hopes for more employment and economic growth.”According to the impact assessment report, small businesses owned by women are at 37,1 per cent, while more than 90 per cent of businesses are run by previously disadvantaged Namibians.The research, commissioned by the JCC, was carried out by Dr Christoph Stork of the Namibian Economic Policy Research Unit (Nepru) and Peik Brunhs and Andrew Harris of the JCC.The aim of the the annual SMEs assessments is to monitor the success of efforts undertaken to strengthen the sector, and the study is to deliver a clear conceptual framework for continued monitoring of the SME sector.Businesses interviewed were neither registered with the Social Security Commission, local authorities or the receiver of revenue, yet these companies generate income, employ staff and look after families.JCC chairperson, Anne Thandeka Gebhardt appealed to the Ministry of Trade and Industry to assist SMEs in accessing capital for their businesses, one area which seems to be a continuous challenge to the sector.The JCC is an SME’s development service provider, that offers supportive services that promote the SME sector in order to enhance equitable economic growth.Esau said the importance of the SME sector could not be over-emphasised, adding that this sector which contributed 11,01 per cent towards the national gross domestic product (GDP) of 2003, needed all the help it could get from both the Government and the private sector.”It should be noted that the formal sector of our economy should start intensifying their efforts in extending a helping hand to the SME sector.”The formal sector could assist in the provision of training in financial and business administration, as well as the provision of credits to viable SME operators.The SME sector needs our assistance in all aspects,” said Esau.He added that the Government would continue aiding the SMEs by providing programmes and facilities.The small business sector already contributes above 10 per cent to the GDP, an increase from 8,43 per cent in 2002; the recording of an increase is which is noted as significant. The SME sector in Namibia has been growing and its contribution to the country’s gross domestic product (GDP) has increased ever since Independence in 1990.The report states that the National Development Plan 2 (NDP2) GDP target for the sector for 2006, was already accomplished in 2003.The SME sector share of labour force went up by nearly 25 per cent, and its share of investment increased by 70 per cent and reached 8,54 per cent of total Gross Fixed Capital Formation.Commenting on the increase the report read: “An increase in investment over the last 12 months is encouraging since it raises hopes for more employment and economic growth.”According to the impact assessment report, small businesses owned by women are at 37,1 per cent, while more than 90 per cent of businesses are run by previously disadvantaged Namibians.The research, commissioned by the JCC, was carried out by Dr Christoph Stork of the Namibian Economic Policy Research Unit (Nepru) and Peik Brunhs and Andrew Harris of the JCC.The aim of the the annual SMEs assessments is to monitor the success of efforts undertaken to strengthen the sector, and the study is to deliver a clear conceptual framework for continued monitoring of the SME sector.Businesses interviewed were neither registered with the Social Security Commission, local authorities or the receiver of revenue, yet these companies generate income, employ staff and look after families.JCC chairperson, Anne Thandeka Gebhardt appealed to the Ministry of Trade and Industry to assist SMEs in accessing capital for their businesses, one area which seems to be a continuous challenge to the sector.The JCC is an SME’s development service provider, that offers supportive services that promote the SME sector in order to enhance equitable economic growth.