Determinant Factors of Business Sustainability for SMEs in Mozambique

Abstract

This study investigates the determining factors for adopting business sustainability practices by Small and Medium-sized Enterprises (SMEs) in Mozambique. The main objective is to identify how economic, social, and environmental variables influence business sustainability. Specifically, the study maps sustainable practices adopted, evaluates the barriers faced, and analyzes the relationship between sustainable financing, managers' education, available financial resources, and the adoption of environmental practices. A quantitative methodological approach was used, including correlation analysis, multiple linear regression, ANOVA, and clustering, based on data representative of the Mozambican context. The results indicate that internal factors, such as turnover and managers’ education, had no significant impact on adopting sustainable practices, while external barriers, such as lack of incentives and low demand, emerged as critical determinants. This study contributes to the literature by highlighting the need for specific public policies, training programs, and economic incentives to promote SME sustainability in emerging economies. It concludes that adopting sustainable practices requires strategic alignment between organizational resources, institutional support, and stakeholder pressures. It is recommended to develop regionally adapted policies, provide technical training for managers, and implement financial incentive programs to enhance business sustainability.