Barriers to micro-enterprise development

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

The lack of knowledge concerning business practices and saving habits in developing countries is still very significant. This paper analyzes the relation that record keeping and saving habits have on business profits and revenues. A survey was conducted among micro-entrepreneurs (grocers) in the city of Maputo, in Mozambique, in order to evaluate their business practices and what their saving habits were. It was found that record keeping and saving habits are strong determinants of business profits and revenues, particularly when used together – an indication of potential synergies between these two variables.