An Exploration of Survival Strategies Employed by Small and Medium Enterprises Within A Turbulent Environment in Namibia

Abstract

F Masiya and Simon E Akpo

Small and Medium Enterprises (SMEs) are of paramount importance in developing countries such as Namibia. However, their survival is increasingly threatened by diverse challenges emanating from the turbulent environments in which they operate. This study explored the survival strategies employed by SMEs in Walvis Bay, Namibia, with specific reference to retail businesses. A total of 116 respondents were engaged as research subjects. Data were collected using closed-ended questionnaires and interviews. Questionnaires were analyzed through descriptive statistics, while interview responses were thematically analyzed. The study hypothesized that SMEs in Walvis Bay were mostly affected by lack of funding, inadequate infrastructure, and economic as well as political factors that threatened their growth. The findings indicated that survival strategies such as alliance strategies, competitive strategies, and differentiation strategies were widely adopted. Specifically, 64% of respondents viewed competitive strategies as very effective, 76% employed differentiation strategies, 55% used cost leadership strategies, and 62% adopted strategic alliances. The results confirmed a strong relationship between survival strategies and the growth and expansion of SMEs. The study therefore recommends that the Government of Namibia enforce supportive regulatory policies to minimize unnecessary environmental constraints threatening SME survival.

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