Windhoek: The Business and Intellectual Property Authority (BIPA) has called on entrepreneurs to formalise their business operations, emphasizing the risks of remaining informal, which include personal exposure to creditors if businesses fail.

According to Namibia Press Agency, Ainna Kaundu, the Acting Chief Executive Officer of BIPA, highlighted these concerns during a media breakfast hosted by the authority. Kaundu explained that legal business entities are designed to protect individuals and their families from personal financial loss, a safeguard that informal businesses lack.

Kaundu pointed out that the government has established formal business structures to prevent personal assets from being jeopardized in the event of business failure. This includes covering risks associated with loans, investments, and capital outlays. She further noted the significance of entrepreneurship as an economic pathway, particularly for young people facing limited employment opportunities after graduation.

The shift towards entrepreneurship, Kaundu explained, necessitates an understanding of the protections offered by formal entities. She emphasized the importance of separating personal and business liabilities to ensure sustainable entrepreneurship.

In an effort to support this transition, BIPA is working on legal reforms aimed at introducing smaller, simpler business entities. These reforms are intended to assist informal traders and start-ups in transitioning to the formal sector. Kaundu stated that these changes will allow more Namibians, including small-scale vendors and young innovators, to operate legally without encountering complex incorporation requirements.

Kaundu also mentioned improvements in service delivery, such as a pilot system that enables clients to reserve a business name within 15 to 45 minutes and complete business registration in a single day, provided all documents are correctly submitted.

In addition to encouraging formal business registration, Kaundu urged entrepreneurs to safeguard their brands, inventions, and creative works through intellectual property tools like trademarks, patents, industrial designs, and copyright. She explained that these tools not only help distinguish businesses in the market but also enhance their competitiveness.