Assessing the Impact of Firm Age and Location on SME Growth Potential in Namibian Markets

Abstract

This study investigates the impact of business age and location on the growth of small and medium-sized enterprises (SMEs) in Namibia. Using a cross-sectional survey design and descriptive-analytical approach, data were collected from SMEs operating in five key towns. A stratified sampling technique ensured robust representation, yielding a high response rate of 94.5% from 189 questionnaires. The findings reveal that a substantial majority of SMEs are in their early stages, with 66% of firms operating for less than five years, indicating limited operational experience and resource bases that may hinder their rapid growth. Favourable environmental conditions, including proximity to customers, safe neighbourhoods, and advantageous lease terms, were identified as key enablers of operational efficiency and competitive advantage. These insights highlight the need for targeted policy interventions and innovative management practices that support young SMEs and leverage locational benefits to foster sustainable growth. This study contributes to the understanding of SME dynamics in emerging markets and offers actionable strategies for enhancing business performance in a competitive landscape.