An Investigation Into Challenges of Funding Social Enterprises: A Case Study of Special Needs Schools in Windhoek, Namibia

ABSTRACT

Social enterprises have the ability to impact nations economically, environmentally and socially by solving the most pressing problems through the provision of their innovative products and services. However, for social enterprises like special schools to deliver effective, efficient, innovative and quality services in response to their goals, they require sufficient and sustainable finances. Many researchers claim that lack of funding is one of the challenges that social enterprises face worldwide. To find out the challenges that special schools face in Windhoek, the study employed an exploratory research design to shed some light. A mixed methodology approach was used. Quantitative data was collected through a questionnaire from 50 participants from public special schools in Windhoek. In addition, qualitative data was collected through structured interviews with key informants from 4 management staff of 2 special schools, one key informant from a philanthropic organisation and another one from the Ministry of Education in Windhoek. The findings of the study indicate that with the dawn of free education in 2013, School Development Fund (SDF) as one of the crucial sources of funding in special schools was abolished. Schools started receiving a Universal Primary Grant (UPE) and a Universal Secondary Grant (USE) from the government. However, due to the financial crisis that the country is experiencing, the UPE budget was cut such that finances have become a challenge to the schools. Moreover, the financial burden is exacerbated by the inadequate support from the parents and private donors, and the inability of schools to generate alternative funding options. Nevertheless, special schools indicated that they get money from UPE and USE grants, fundraisings, donations and school fees that is charged to prevocational and vocational courses. In conclusion, the recommendations are that there should be a special plan for intensifying private public partnerships for funding as the special schools’ needs are much more than the normal ones. However, donor funding should not be a permanent way of funding because as of late, there has been a decrease in the number of donors. Therefore, special schools need to have other alternative innovative funding to supplement state funding and donations.