An investigation into the challenges faced by small and medium enterprises in utilising e-commerce in Windhoek, Namibia
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Date
2021
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University of Namibia
Abstract
The E-commerce industry in Namibia is currently significantly underutilised by the SME
sector. It is well established in research undertaken in other economies globally that improved
utilisation of e-commerce by SMEs uplifts their perfonnance. This study aims to investigate
the challenges faced by small and medium enterprises in utilising e-commerce. The study uses
a case study approach with the City of Windhoek as the case. Methodologically the study
used a qualitative research method. This study focussed on investigating the extent to which
e-commerce is utilised by SMEs incubated by the City of Windhoek as well as their perceived
challenges and benefits. The study interviewed eighteen (18) SME owners incubated at the
City of Windhoek Bokamoso Incubation centre. Respondents were purposively selected and
asked to respond to a set of semi-structured questions. Data collected in the study was
analysed using thematic analysis, and the themes that emerged from their responses were
discussed and supported with literature. The results suggest that these SMEs are aware of e commerce, and some are already utilising it. Those utilising e-commerce do so because of
benefits like international trade, reduced costs, and the opportunity for a high customer base.
On the action drivers, SMEs believe that they are driven to adopt e-commerce because of the
demand from the market. In addition, they are driven by external parties such as the Ministry
of Trade and Industry to use e-commerce. The challenges identified by the SMEs are
organisational, financial, technical as well as legal and regulatory. Even though the SME
owners understand e-commerce benefits, they are hindered from adopting e-commerce by
lack of funds to purchase secured online systems that are not prone to fraud and the
regulator's framework surrounding e-commerce in Namibia does not support various online
payment methods. The study recommends a drive to implement e-commerce as part of the
long-tenn business strategy. Regulatory institutions should also work on providing awareness
and ease the regulatory framework surrounding e-payment and the attendant security
measures. At policy level, the study recommends financial inclusivity through the number of
on-line payment systems that are accessible to SMEs
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Management Strategy
Keywords
E-commerce industry, Namibia, Small and medium enterprises, Windhoek, University of Namibia