Authors : Albertina Celeste Inácio Ribáuè; Kátia Vilar Chissale

Volume/Issue : Volume 11 - 2026, Issue 5 - May

Google Scholar : https://tinyurl.com/y66zkp45

Scribd : https://tinyurl.com/4auhrc7h

DOI : https://doi.org/10.38124/ijisrt/26May104

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Abstract : This study examines the influence of financial management on the sustainability of Small and Medium Enterprises (SMEs) in the city of Nampula, Mozambique. The research addresses the persistent challenges SMEs face regarding access to credit and the effective management of financial resources in a constrained economic environment. The main objective was to analyze how financial management practices contribute to business sustainability among SMEs operating in Nampula. The study adopted a qualitative descriptive and exploratory approach based on a case study involving SME managers. Data were collected through semi-structured interviews and analyzed using content analysis techniques. The findings reveal that although access to financing remains important, business sustainability depends largely on the effectiveness of internal financial management practices. Informal financial controls, limited planning capacity, and weak resource management mechanisms were identified as major constraints affecting SME performance and continuity. The results further indicate that high borrowing costs and strict collateral requirements reduce the positive impact of external financing. The study concludes that effective financial management enhances organizational resilience, supports operational continuity, and reduces financial vulnerability in uncertain business environments. The study recommends strengthening financial management capabilities among SME managers and developing financing policies adapted to the realities of local enterprises.

Keywords : Financial Management; Business Sustainability; SMEs; Financial Practices; Nampula.

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