Micro-enterprises in a developing economy- challenges and sustainability

Small and micro-enterprises play a significant part in most economies, whether developed or developing. However, in developing countries these enterprises have tended to be looked at from a development, or poverty alleviation perspective, rather than as entrepreneurial activities and potentially growing businesses. This paper presents the first step in a longitudinal study of a group of micro entrepreneurs in Mozambique from an entrepreneurship perspective rather than a development one. Mozambique lies along the Indian Ocean sea border of Southern Africa and is characterised by mountainous inland zones with a coastal plain. As a result of war and natural disasters over a prolonged period, there is little industry, primary industries are primitive and there is virtually no infrastructure. Mozambique is ranked as one of the poorest countries in the world. The purpose of this paper is to document the activities of a group of micro-entrepreneurs in Beira, in Central Mozambique, who received micro-financing to establish or grow their micro-enterprises and to examine these enterprises in terms of their potential for long term success. The first series of interviews with the entrepreneurs at their place of work has been conducted with a second round planned for later in 2006. This process itself offered many challenges, as did identifying the commonalities between enterprises in the developed world and enterprises entered into for largely survival reasons, that had no access to basic services such as electricity, running water, refrigeration and transport. Testing well documented indicators of success in this context highlights interesting differences and identifies others that may or may not be relevant in a different context.