During the government negotiations of 2001, sustainable promotion of the economy was declared one of the focal points of German-Namibian development cooperation. The engagement of DED therefore aims at the promotion of entrepreneurship amongst small and medium size enterprises (SMEs). In their capacity as job creators and generators of income and market-oriented products, SMEs not only function as the backbone of Namibias economy, they are also the driving force behind poverty reduction. Targeting existing and potential SMEs, DED wants to strengthen their entrepreneurship. It does so in accordance with its life cycle approach that assists SMEs throughout the various stages of their respective business acumen.

Aiming at the creation of an inspiring environment for emerging enterprises and products, DED promotes local economic development and the implementation of market-driven frameworks on the decentralized administrational level (e.g. municipalities, communities and others). Likewise, DED assists learning institutions with implementing programmes that themselves promote innovative thinking and entrepreneurship and therefore fostering the establishment of new SMEs. Bilaterally, DED assists SMEs with general business consultancy and management training and helps gain access to professional financial assistance. With incorporating SMEs into existing business association networks, DED fosters the improvement of the emerging businesses' competitiveness and professionalism.

DED regards the creation of development partnerships with the local economy as the key to SME prosperity. Hence, it acts as a process consultant for the Global Compact Network Namibia, an association of Namibian employers who promote Corporate Social Responsibility and Sustainable Management. DED is party to several so called Public-Private-Partnerships (PPPs) with companies of the private sector that combine business administration and development assistance in their enterprises (e.g. staff and supplier training, sustainable resource management and others).