SUPPORT STRUCTURES FOR SMALL TO MEDIUM
ENTERPRISES AND THEIR POTENCY
IN EMPLOYMENT CREATION IN
GREATER MAPUTO

SUPPORT STRUCTURES FOR SMALL TO MEDIUM
ENTERPRISES AND THEIR POTENCY
IN EMPLOYMENT CREATION IN
GREATER MAPUTO

ALEN GEOFFREY SAWAYA

Small and Medium Enterprises are globally credited for creating employment especially for
the youth, and to an extent, contributing to the gross domestic product of nations.
Unemployment is a scourge in Mozambique and small and medium enterprises are seen as a
solution to this universal economic problem. The study sought to answer a fundamental
research question; first, whether or not the support structures from financial institutions,
government agencies, large firms and non-governmental organizations are sufficient for
sustainable development and growth of small and medium enterprises, and second, whether
small and medium enterprises that have received support, contribute to reducing
unemployment in Greater Maputo. The study adopted the quantitative approach employing
questionnaires as tools for data collection. The sample was chosen from the population of
small and medium enterprises in Maputo using stratified random sampling method. A total
of 550 respondents were selected from the seven administrative districts of Greater Maputo
and the interviews were conducted using the face to face method employing structured,
close ended questionnaires. The study found that support afforded to small and medium
enterprises was too little for the sustainable development of this important sector of the
economy. The major Achilles‘ heel among small and medium enterprises development was
not the lack of entrepreneurial drive, rather subdued competitiveness. The study
recommended that proactive steps be implemented to support small and medium enterprises
in Greater Maputo, especially manufacturing enterprises. Financial institutions, government
agencies, large firms and non-governmental organizations should take positive action to
supports especially start-up firms as they are the source of employment creation

ZOU

2014