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Title Investigating the impact of microfinance institutions' products on the growth of SMEs in Katutura, Namibia
Full text http://hdl.handle.net/11070/3255
Date 2022
Author(s) Shipefi, Sem L.
Abstract A mini thesis submitted in fulfillment of the requirements for the Degree of Master of Science (Development Finance) - This study analysed the impact of microfinance institutions' products on the growth of SMEs in Katutura. The objectives of the study were to determine whether there is a significant relationship between microfinance loans and the growth of SMEs; to establish if there is a significant relationship between microfinance savings and the SMEs' growth as well as to identify other factors enhancing SMEs' growth. The study employed a survey research strategy in which 87 SMEs were utilised as a sample size. A structured questionnaire was used as a research instrument to collect the primary data from SMEs, situated at Soweto Market, Soweto Taxi Rank and Wanaheda Industrial Stalls. Data were analysed using descriptive, inferential analysis which entail the use of Chi-square and simple percentages. The results revealed that there is a significant relationship between microfinance loans and SMEs' growth. On the same note, there is also a significant relationship between microfinance savings and SMEs' growth. Overwhelmingly, 100% of the respondents indicated that the organisation characteristic is one of the other factors that drive SMEs' growth. Conversely, the study established that microfinance insurance is not offered and microfinance institutions are not offering adequate training to capacitate SMEs. The study recommended the MFIs to start diversifying their products offering and also to offer products that are tailored to meet the needs of the SMEs. Moreover, they should offer more training to SMEs on financial management before they lend to SMEs and extensively provide support on managerial skills. Furthermore, MFIs should design and offer insurance products that are aimed at mitigating vulnerabilities and preventing microfinance consumers from catastrophic burdens. This product should entail health, life and all assets in possession of the business. Lastly, the study recommended the establishment of a One-stop centre for SMEs in Windhoek.
Subject(s) Small and medium enterprises in Namibia; Microfinance; Financial management
Language en
Publisher University of Namibia
Type of publication Thesis
Repository Windhoek - University of Namibia
Added to C-A: 2022-09-19;09:21:12