Survival determinants of Small and Medium Enterprises (SMEs) in Mozambique

Abstract

Small and Medium Enterprises (SMEs) have been the most essential component for both developing and developed economies. Small companies are independent companies, employing fewer than a certain number of employees and having a specific turnover or balance sheet. Thus, most of the variables that define SMEs vary between countries and are unofficial. In this article we highlight the issues of SME definition in Africa and especially in Mozambique. In addition, we discuss the variables that determine the survival of companies in Mozambique. strategic management adopted by SMEs in Mozambique, in addition to investigating how these companies develop strategically. Most SMEs in Mozambique are not structured to have sustainable strategic management, adapting to the market reactively. Research indicates that the growth in the number of SMEs in Mozambique is not satisfactory, moreover, most SMEs are currently adopting the maintenance or diversification strategy to avoid their disappearance in the market. Most of these companies are not able to develop strategies that provide them with a sustainable competitive advantage in the market in which they operate. The lack of impetus for competitiveness was the main problem that impeded the survival and sustainability of SMEs from their perceived objective of alleviating the scourge of unemployment and weak economic growth.