Drivers of MSME growth in Namibia: Empirical evidence from manufacturing enterprises

Abstract

Micro, small, and medium enterprises (MSMEs) play a critical role in Namibia’s economic diversification and employment creation, yet their performance, particularly in the manufacturing sector, remains weak. This study investigates the internal and external drivers of MSME growth using the Resource-Based View and Dynamic Capabilities Theory. A quantitative explanatory design was employed, based on survey data from 298 manufacturing MSMEs. Multiple regression analysis reveals that strategic adaptability, access to finance, and employee training have statistically significant positive effects on MSME growth, while technology adoption and organisational culture, although positively associated, do not exert significant independent effects. These findings suggest that MSME growth is driven primarily by adaptive managerial capabilities and resource accessibility rather than by structural or technological factors alone. The study contributes to the literature by providing empirical evidence from a developing economy context and offers policy-relevant insights for strengthening MSME capability development and financial inclusion.