Primary factors threatening survival of SMEs in Mozambique

Abstract

There is no dispute that entrepreneurship is critical for spurring entrepreneurs into launching small businesses to solve the perennial problem of youth unemployment. The prevailing viewpoint has therefore postulated on the fact that only the lack of entrepreneurship is to blame for the observed paucity of business start-ups to address the scourge of unemployment in Mozambique. This paper is based on a research that was carried out in Greater Maputo, the capital of Mozambique, involving a sample of 485 SMEs chosen using random sampling strategy. A face to face interview was conducted using structured, close-ended questionnaires to collect the primary data. The research was carried out applying quantitative methodology, using descriptive statistics and inferential research design, emphasising on frequencies and percentages as  instruments of data management. The study revealed that the main problem of the start-up, growth and sustainability of SMEs was in fact inadequacy in competitiveness rather than the lack of entrepreneurship per se. The paper therefore offered recommendations on the appropriate solutions of encouraging the spirit of competitiveness within SMEs so as to deal with the scourge of youth unemployment in Mozambique.

Keywords: Competitiveness, Entrepreneurship, small and medium enterprises, SMEs