Abstract
<p><em>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. </em><em>Using a sample of SMEs from Greater Maputo to represent the country as a whole, the study was carried out</em><em> 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.</em></p>
Highlights
Empirical evidence purports that support is vital for the sustainability of Small and Medium Enterprises (SMEs) in order to have the ability to spur economic growth and impact on resolving the problem of unemployment
The following sections analyze the results of the two sets of examination; first, the results from the descriptive analysis involving large firms support to SMEs, and the second assessment involving the testing of hypothesis to determine the participation of large firms in supporting SMEs sustainability
Large corporation give support in the context of sub-contracting or toll manufacturing where small batch manufacturing may not be economic for large industries, as such they are given to those manufacturing SMEs that at least show signs of operational ability
Summary
Empirical evidence purports that support is vital for the sustainability of SMEs in order to have the ability to spur economic growth and impact on resolving the problem of unemployment. Working SMEs have long proven themselves to be very proficient at forecasting market trends, benefiting from new technologies, and using their smallness to outpace larger enterprises While their small size enables them to elude the unwieldy bureaucracies that deter firm’s manoeuvrability endemic in large enterprises, SMEs are restricted by undeniable realities that can be addressed by the involvement of large enterprises. Badal (2013) supports this premise by mentioning that when small companies work together with large corporations the SMEs reform themselves in a manner that improve their organizational structures, management procedures, and operations These modifications lead SMEs to upgrade their technologies, increase their competence and most importantly, become financially stable. The objectives of this study is to find out if large firms are actively supporting SMEs in Mozambique, and if not, to find out what measures are necessary to actively promote more large firms and SMEs cooperation in the country
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