FinScope Mozambique MSME 2012 survey

This report provides a synthesis of the findings from the FinScope MSME Survey, which was carried out in Mozambique in 2012. This study was initiated by the Ministry of Finance and FinMark Trust, with funding provided by the German Development Cooperation through the KfW Development Bank (KfW). The primary aim of the research was to describe the micro-, small-, and medium- business sector in Mozambique as well as the key challenges MSME owners face (with particular focus on their financial services needs) – and as such close the information gap, which exists especially for unregistered businesses (mainly individual and micro-entrepreneurs). These MSME owners may be identified under the General Statutes of Small and Medium Enterprises and also extend to the informal sector – individuals that are not formally registered. This information helps to identify and design appropriate support programmes for the whole sector, determining policy direction and relevant financial products and services to address the needs of the MSME owners in Mozambique.

The survey involved a comprehensive listing exercise and interviewing a nationally representative sample of 3 429 MSME owners (18 years and older, including those who employ 100 people or less, as well as individual entrepreneurs without any employees). Turnover is also included under the General Statutes of Small and Medium Enterprises for their classification, however for the purposes of this study, turnover was not used as a selection criteria due to high subjectivity and reluctance to disclose reliable income figures. This research report provides an overview of the project, its top-line findings and the issues arising from the study. In particular it provides an insight and contributes to the understanding of critical factors impacting small-scale entrepreneurial activity in Mozambique.