Reality Checks Mozambique. Annual Report. Year Four, 2014 - Entrepreneurship

A series of five “Reality Checks in Mozambique” will take place in the period 2011-2016, focussing on the dynamics of poverty and well-being with a particular focus on good governance, agriculture/employment/ climate and entrepreneurship that are key result areas in Swedish development cooperation with the country. Each Reality Check will be published in the form of one Annual Report and three Sub-Reports from each of the three selected study-sites (see ORGUT 2011a for more details).More concretely, the “Reality Checks in Mozambique” are expected to:

• Inform the public discussion among key development actors on poverty reduction, especially in the province of Niassa;
• Contribute to a better understanding of qualitative poverty monitoring methods in Mozambique;
• Provide Sweden with relevant qualitative data on developments and results from its engagement in Mozambique and support further implementation of its programme in Niassa.

This is the forth Annual Report on entrepreneurship. Among the conclusions: There is a weak basis for the current emphasis among donors on private sector/ entrepreneurship as a way to contribute to poverty reduction, particularly in rural areas. Rather than focusing on capital accumulation and employment creation, local entrepreneurs tend to spread risks by investing in small entities and social capital. The best way for donors to contribute to poverty reduction and gender equality in Niassa through support to private sector/entrepreneurs would be to focus on possible innovations in primary production and ways to ease to workload of women.