WITH the onset of pioneering innovations in the manufacturing sphere, prospective business owners are often faced with a plethora of questions. This is especially when contemplating how to break into this sector which has in fact lowered the prospect of new entrants into this key field of national development.
In essence and in view of Namibia’s industrialisation agenda, responsible authorities must now look into this growing problem and underline the development of new manufacturers by empowering them with the objective of enhancing Namibia’s manufacturing sector. The sector should be on the level that is relatively competitive with other nations.
Business expansion through capital acquisition is one of the most challenging phases of a company growth. This aspect is even more concerning in the manufacturing sector due to the extensive financial injections required during the initial phases of business development. Lack of information and awareness regarding financing options often hampers potential entrepreneurs from executing their plans. It is therefore imperative to explore the merits and drawbacks of all available options for acquiring capital and applying effective strategies for improving a company’s chances of receiving funding from financial institutions.
Small manufacturing units are usually backed by a competent idea for driving business growth. However these ideas are seldom supported by a strong and well-researched business plan. Industry analysts believe that thorough business plans play a critical role in ensuring that a company becomes an ideal candidate for lending. By integrating the elements of financial projections, economic forecasts, product marketing, organisational overview, target market and expected sales revenue, a business plan depicts the entrepreneur’s confidence in the success of a venture.
With the launch of several industrial initiatives across sub-Saharan Africa that have extended to the fields of technology, healthcare, construction and social development, the entrepreneurial conditions in the region are indeed promising. The conditions provide the ideal opportunity for prospective speculators in Namibia to learn the tools required to drive manufacturing ventures towards the path of success. As the government aims to establish a positive and welcoming climate to stimulate investment in Namibian’s small and medium enterprises (SMEs), a number of funding options have become available to kick-start potential projects.
Apart from government institutions and financing bodies, private investors who are optimistic about the economic growth of the region are also willing to extend their capital to Namibian business ventures with the potential to provide superior returns on investment.
While these investors will secure a portion of the profits generated by companies as a reward for their investment, businesses have better chances of obtaining substantial funding through this option without any additional borrowing costs. As sub-Saharan Africa propels itself towards a promising economic future, small manufacturing businesses can benefit by applying effective strategies and ideas to grow the scale of their operations.
Confidente. Lifting the Lid. Copyright © 2015