Ndapwa Alweendo
1 July 2009
SMALL and Medium Enterprises (SMEs) are proving that they can compete with larger and more established businesses, a fact confirmed at this weekend's Namibian Chamber of Commerce and Industry (NCCI) gala dinner, hosted by the Windhoek Country Club Resort.
The hotel contracted HNES Variety Caterers, a small catering business owned by Hilma Shikongo, to serve traditional Oshiwambo-style dishes for those who would prefer tripe and mahangu porridge to the hotel's dinner. The traditional food proved to be extremely popular with the guests, so popular that Shikongo ran out of food before she could serve all the guests.
"My food tastes better than hotel food," she claimed, when asked why her dishes had been so popular.
Shikongo started her business in late 2006, working out of her home in Eros. She currently employs four full-time workers, and as many as 12 part-time employees. She mainly caters for smaller functions, but has recently started offering her services to hotels.
Success was not always guaranteed for Shikongo. The catering industry is notoriously difficult to succeed in, due to the large number of competitors and its dependence on word-of-mouth recommendations.
"It was very difficult to get started," Shikongo says.
Obtaining finance is one of the largest problems facing entrepreneurs.
"I started my business with my own money," Shikongo says, "but I'm trying to get finance from the bank so that I can open a restaurant in town. Luckily, I have a good financial history, and I meet all the requirements to get a loan."
For those who do not meet the requirements set by the banks, obtaining finance can be a serious challenge. And without finance, most small businesses cannot get off the ground.
Since SMEs are viewed as one of the drivers of the Namibian economy, entrepreneurs' increasing struggles to obtain financing from the banks is even more worrying. NCCI President John Endjala and Trade and Industry Minister Hage Geingob both emphasised the need to support SMEs at the gala dinner.
The proposed SME Bank, which would cater exclusively to small businesses, particularly those run by the youth and women, may well be the boost that the private sector needs to survive the global financial crisis.
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