Presidential Terms And Sme Resilience In Mozambique: A Perspective From 2005 To 2024
Keywords:
SMEs, government policies, Mozambique, political stability, business sustainabilityAbstract
In Mozambique, Small and Medium Enterprises (SMEs) are crucial for economic growth and social stability. However, they face significant challenges due to frequent changes in government policies associated with different presidential mandates. This study identifies a substantial gap in the literature regarding the direct impact of these political changes on the operations and sustainability of Mozambican SMEs. The research adopted a qualitative methodology, utilizing in-depth interviews with SME owners and managers to explore how changes in government policies affect their businesses. The interviews were analyzed using content analysis through NVivo 12 software, enabling a detailed investigation of qualitative data to identify emerging themes and patterns. The findings reveal that SMEs are highly sensitive to political fluctuations, which often result in rapid regulatory changes and subsidy alterations, negatively impacting both the operational and strategic planning of the businesses. SMEs struggle to adapt to these swift changes, frequently resulting in significant financial challenges and growth obstacles. The main conclusion of the study is that political instability and unpredictable policy changes pose substantial risks to the sustainability of SMEs in Mozambique. This volatility not only inhibits economic growth but also compromises the ability of SMEs to effectively contribute to the country's economic development. Therefore, it is recommended that future government policies prioritize stability and predictability to support SMEs. This includes implementing consistent fiscal and regulatory policies and creating an environment that facilitates long-term planning and sustainability for SMEs. These measures are crucial to ensure that SMEs can thrive and continue to be a vital pillar of Mozambique's economy.
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