Large Enterprises Neglect Supporting SMEs in Mozambique

Abstract

It is globally accepted that support to Small and Medium Enterprises (SMEs) at their birth and during growth is essential to nurture them in order to avoid premature deaths. Support to SMEs can come in many forms, but large enterprises support to SMEs, especially manufacturing ones is crucial to enable them to enhance their organizational structure, adoption of new technology and gaining financial stability. The objective of this research was to find out the impact of large firms support to SMEs and how the two sectors interact in the Mozambican economy. Using a sample of SMEs from Greater Maputo to represent the country as a whole, the study was carried out involving three sectors, manufacturing, services and commerce sub-sectors. The research used quantitative methodology applying face-to-face questionnaires, based on structured close ended questions. The study found that there was very little support to SMEs coming from large firm in Mozambique. It was recommended that more incentives and encouragements be given to large firms in order to increase their participation in SMEs development and growth in the country.