Christine Aitana, Tendai Douglas Svotwa
Abstract
Micro, Small, and Medium Enterprises (MSMEs) are the engines of economic growth, propelling job creation, industry developments and innovation. However, there are major challenges facing MSMEs in accessing the much-needed financing from VC and PE financiers. Using a qualitative approach and semi-structured interviews, this study explored major challenges facing MSMEs in accessing equity financing in Khomas Region, Namibia. Various MSMEs owners and owner-managers, as well as VCs and PEs financiers were interviewed to solicit their views on the subject. The main findings indicate that factors such as information asymmetry, poor MSME investment readiness and awareness, adverse selection and moral hazards, high risks and uncertainties as well as investments management challenges are some of the contributing elements to inability to access VC and PE financing. The data collected were categorised into various themes and sub-themes based on the frequency and relevance of the data provided by the participants. Thematic analysis was used to analyse the information, draw out conclusions and proffer recommendations for consideration by MSME and relevant stakeholders. The study greatly contributes to the MSME financing field as it unpacked the challenges faced by MSMEs in accessing equity financing in Namibia and further provides recommendations and areas for future research.