By JOSEF KEFAS SHEEHAMA
In Namibia, youth comprise more than 70% of the population and face a range of challenges, such as high rates of unemployment and limited access to quality education. In order to tackle this problem, the Namibian government has set aside N$257 million supporting youth entrepreneurship.
It’s fundamental to comprehend that young entrepreneurship in Namibia is a potent force for social change, job creation, and economic progress rather than only a means of survival. The ability of Namibian youth to start their own businesses and combat unemployment is one of their most important entrepreneurial potentials.
According to the latest statistics from the Namibia Statistics Agency (NSA), youth unemployment in Namibia is around 45%, indicating a serious problem with unemployment. Namibian youngsters can start their own businesses because there aren’t many job openings in the formal economy. My mini-research found that at least half of young people, including those with school-leaving certificates and graduates, are unemployed.
This indicates that entering the workforce at a younger age is more difficult, and that our economy cannot support the large number of graduates produced by our higher educational institutions. According to the 2023 census, just 547 000 of the 1.88 million people of working age are employed.
Small and Medium Enterprises (SMEs) are an important aspect of Namibia’s economy. It is estimated that, in Namibia, small and medium-sized enterprises make up 30%, or 70 000, of the total of 230 000 businesses registered in Namibia. Surprisingly, SME employ approximately 36.5%, or 200 000, of the 547 000 labor force, and total economic output accounts for approximately 12% of GDP.
Youth entrepreneurship will contribute considerably to job creation, innovation, food security, and poverty reduction in all 121 constituencies. Their success or failure has ramifications for Namibia’s overall GDP. According to the European Journal of Research and Reflection in Management Sciences, African small and medium-sized enterprises (SMEs) contributions, challenges, and solutions SMEs account for 95% of all registered enterprises and provide roughly 50% of Sub-Saharan Africa’s overall GDP.
Furthermore, the poor involvement of young people in the just-approved National Youth Fund, which has been allocated N$257 million, must be monitored. There are now just 187 young people who have applied, with many unable to develop acceptable business plans and financial projections. Some are also unable to pay consultants due to a lack of money.
It is important to recognize that many young people lack new or bankable ideas, instead focusing on traditional enterprises such barbershops or hair salons. This is a severe issue because some young people are not well informed, and there is also a system that has not adequately prepared young people to think creatively and generate employment opportunities.
Many university curricula are antiquated, producing graduates with degrees that do not meet contemporary job market demands or develop an entrepreneurial attitude. To solve this, a transformation is required in the school system to combine entrepreneurship programs, practical skills training, and hands-on experience in order to foster job creation and address the ongoing concerns of unemployment and underemployment.
Having access to opportunities, support, and information that can lay the groundwork for success is just as important as revenue generation in youth-driven business. Despite the seeming challenges, there remains optimism in the shape of group effort.
In order to give young entrepreneurs the tools they need to transform their ideas into successful enterprises, governments, the private sector, and society at large must all play a part. In spite of this, young entrepreneurs need to actively look for opportunities and create networks.
They may establish a future in which everyone has the right to access opportunities rather than it being a privilege. Only a small number of SMEs in Namibia are surviving, which is unfortunate, but I think young entrepreneurs will be more creative and expand their product offerings.
Moreover, it is crucial to keep in mind that when you are submitting your funding request, you should include working capital along with enabling assets for a minimum of three months in order to cover operating expenses such as payroll, rent, petrol, and other costs.
This is crucial because you still need to start off the company, and it is impossible to earn enough money to pay for all of your operating expenses and put in the extra effort to ensure that you repay the loan after the 12-month grace period. Budgeting is an important part of the loan application process, so young entrepreneurs should keep that in mind.
Making a thorough yet practical budget will show your financial accountability, profitability, and room for expansion. It is not necessary to present a subpar business plan because the analyst will review your information to determine your capacity to manage cash flow, pay off debt, and maintain expansion. A sound budget will position your company for long-term success in addition to increasing your chances of obtaining funding. The anticipated cash flow should therefore be realistic.
Namibia’s National Youth Fund (NYF) can be a valuable starting point, but it does not guarantee success if young entrepreneurs fail to focus on taking consistent, small actions, setting realistic goals, finding a mentor or accountability partner to help them stay focused, and developing resilience to overcome challenges, all of which are critical for a business’s long-term success and survival.
The long-term impact of quality company growth support requires high-potential young Namibians to refine their business model, improve their leadership abilities, and increase their investment readiness. Young entrepreneurs should have a robust cash flow management strategy.
Keep a close eye on all money coming in and going out, and know the difference between cash flow and revenue. Maintain a reserve fund whenever you can to assist in paying bills when things are tight. Too many new business owners ignore cash flow in favor of revenue and profit.
Even a profitable company can fail due to poor cash flow management. In order to save funds, new entrepreneurs should avoid purchasing cars until their company is stable. An early, costly purchase, such as a car, could take resources away from important starting tasks, endangering the stability and long-term sustainability of the company.
In conclusion, Namibia can unleash the full potential of its youth by investing in and supporting youth-led initiatives, which will promote innovation and economic progress. Hope, resiliency, and the prospect of a better future for Namibia are symbolized by the youthful entrepreneurial spirit.
