Impacts of Digital Entrepreneurship on the Sales Volume of MSEs in Maputo: An Analysis from 2020 To 2023

Impacts of Digital Entrepreneurship on the Sales Volume of MSEs in Maputo: An Analysis from 2020 to 2023

Cleinize Banu Fache Chale Mbiza^1*, Cláudia de Ruvídia Augusto Viola²

¹Master′s Student in Business Administration and Management (MBA), Catholic University of Mozambique.

²Master in Business Administration and Management (MBA), Catholic University of Mozambique.

*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.905000178

Received: 27 April 2025; Accepted: 04 May 2025; Published: 05 June 2025

ABSTRACT

Digital entrepreneurship has been consolidated as a promising strategy to boost the growth of micro and small enterprises (MSEs) in developing countries, especially in the face of the challenges posed by the COVID-19 pandemic. Using a quantitative approach, this study investigated the impact of using digital platforms on the business performance of MSEs in Maputo city between 2020 and 2023. Questionnaires were administered to 25 companies that incorporated digital tools into their operational processes. The results revealed the predominant use of social networks, especially WhatsApp (60%), followed by Facebook (28%) and Instagram (12%), being fundamental for the continuity of operations during the pandemic. These platforms were mainly used to communicate with clients, promote products and carry out business transactions. It was also observed that 48% of the companies started their digital activity before 2020, while the rest intensified this use during the period of restrictions imposed by the pandemic. The frequency of digital publications and interactions was also relevant, with 40% of companies posting weekly and 32% daily. Despite the observed benefits, the study did not reveal a significant impact of social networks on sales volume, particularly when analyzing the frequency of publication. Significant challenges remain related to content management and the digital training of teams. It can be concluded that digitalization has helped to increase the visibility and competitiveness of MSEs, but it is essential to invest in public policies and training programs aimed at digital inclusion and the technical strengthening of these companies, and the creation of a more favorable environment to ensure their sustainability and effective insertion into the digital environment.

Keywords: Digital entrepreneurship; micro and small enterprises; social networks; e-commerce; digital transformation.

INTRODUCTION

In recent years, the use of digital platforms has been consolidated as an essential element for the growth and sustainability of micro and small enterprises (MSEs) in various parts of the world. These platforms not only provide greater visibility and competitiveness, but also create an environment conducive to the emergence of new entrepreneurial initiatives. In particular, MSEs have used these digital tools to overcome traditional structural limitations and adapt to the new demands of the globalized marketplace.

In Mozambique, MSEs play a crucial role in economic dynamics, representing 98% of the country’s business fabric. They are responsible for generating formal jobs and contributing significantly to the national Gross Domestic Product (GDP), especially micro-enterprises, which represent around 78% of the companies operating in the country (Instituto Nacional de Estatística – INE, 2023). Nonetheless, numerous entrepreneurs encounter obstacles such as limited access to funding and insufficient technological training, which hinder their ability to compete effectively in the evolving digital marketplace (Silva, 2022).

Digital transformation helps MSEs overcome barriers by leveraging social networks and e-commerce platforms like Facebook, Instagram, and WhatsApp (Nascimento, Luft, Dacorso & Correia Neto, 2019). However, the effectiveness of these tools depends on several factors, such as the quality of the technological infrastructure, the level of digital knowledge of entrepreneurs and the ability to adapt to market demands (Kotler, Mansour & Armstrong, 2023). Companies that fail to implement digital transformation can face serious risks of instability and unsustainability (Paul, Alhassan, Binsaif & Singh, 2022), which reinforces the need for appropriate digital strategies.

Despite the growing recognition of the impact of digital platforms, there is a lack of studies that empirically assess how these tools directly influence the commercial performance of MSEs, particularly in urban contexts such as Maputo. This gap in the academic debate justifies the relevance of an in-depth analysis of how local MSEs have used digital platforms and what their concrete effects have been on sales and commercial performance.

The aim of this article is to analyze the impact of digital entrepreneurship on the sales of MSEs in Maputo between 2020 and 2023. To this end, we sought to identify the main digital platforms used, describe the functionalities of these tools in the digitalization process and analyze their relationship with the main challenges faced by MSEs in using these technologies. The research adopts a descriptive-quantitative approach, and the specific objectives include: (i) identifying the digital tools most used by MSEs; (ii) describing how these tools are used in the digitization and entrepreneurship process; and (iii) exploring how adapting to digital influences sales results and the difficulties faced in the transformation process.

Law No. 7/2014 regulates the creation and operation of MSEs in Mozambique, clearly defining the turnover limits and number of employees for micro and small enterprises. According to data from the National Statistics Institute (INE, 2023), MSEs are responsible for around 28% of the national GDP and 42% of formal jobs, highlighting their importance to the national economy. With more than 24,810 MSEs in Maputo city (INE, 2024), many of these companies are integrating digital transformation into their operations, which makes Maputo an ideal context for studying the impact of digital platforms on small business sales.

MATERIALS AND METHODS

Type of research

This study is characterized as quantitative and descriptive research, developed using the deductive method, which, according to Almeida (2021), allows general principles to be applied to particular situations, leading to the formulation of hypotheses based on previously established theories. In this context, it was assumed that digital platforms are widely used by micro and small enterprises (MSEs) as a response to contemporary challenges in the business environment. The research focused on verifying this premise in the specific context of the city of Maputo, Mozambique, during the period from 2020 to 2023. The quantitative approach was chosen for its ability to measure, with statistical rigor, the practices adopted by MSEs, facilitating the analysis of patterns and trends in the use of digital tools and their influence on the commercial performance of companies.

Universe and sample

The research universe was made up of micro and small companies based in the city of Maputo that use digital platforms as part of their marketing and commercialization strategies. Sampling was non-probabilistic, by convenience and intentionality, and 25 MSEs were selected that met the following criteria: proven operations in the city of Maputo, frequent use of digital platforms (such as Facebook, WhatsApp and Instagram), and availability to participate in the study. According to Almeida (2021), this sampling technique is suitable for investigations aimed at analyzing groups with well-defined characteristics that are relevant to the research objectives. The intentional choice of information units allowed for a more precise cut of the reality studied, prioritizing companies with greater involvement in digitalization.

Data collection instrument

Data was collected using a structured physical questionnaire. The questionnaire consisted predominantly of objective questions, organized in such a way as to capture relevant information about the profile of the companies, the types of platforms used, their specific functionalities in the context of business activities, and the perception of managers regarding the impact of using these tools on sales volume. The instrument was designed to ensure uniform responses, facilitating the tabulation of data and allowing the application of appropriate statistical techniques for the descriptive analysis of the phenomena observed.

Data collection procedures

The questionnaire was distributed by email, with self-administered forms available both online (via email and WhatsApp) and in person. This approach allowed respondents greater flexibility and autonomy, giving them the freedom to choose the time and place to complete their answers. This remote method of application also helped to reduce biases, such as haste or pressure during completion, factors which could compromise the quality of the information. Participants were informed in advance about the objectives of the research and were guaranteed the right to refuse participation without any prejudice. The method adopted proved to be effective in obtaining reliable data in a short space of time, while respecting the logistical and operational limitations of the study.

Data analysis

The data was organized in electronic spreadsheets and analyzed using descriptive statistics, applying absolute and relative frequencies (percentages). The analysis also included measures of central tendency (mean) to understand the behavior of the data. The answers were grouped into thematic blocks, which made it easier to analyze and compare the answers within specific categories. Graph plotting and statistical analysis was carried out using the SigmaPlot V. 12 statistical package.

Ethical considerations

All the methodological procedures respected the ethical principles of scientific research with human beings, ensuring respect for the dignity, privacy, and autonomy of the participants. Before the questionnaire was administered, company managers were duly informed about the objectives of the research and how the data collected would be used. Participation in the study took place through free and informed consent, ensuring that the respondents were fully aware of the terms of the research. Institutional ethical standards were strictly followed, promoting transparency, fairness, and justice in the conduct of the research process and data analysis. For data analysis and graphical presentation of the results, the software OriginPro 2025 (OriginLab Corporation, Northampton, MA, USA) was used to generate descriptive visualizations that supported the interpretation of findings.

RESULTS

The data presented in Figure 1 highlight the main digital tools adopted by micro and small enterprises (MSEs) in Maputo between 2020 and 2023. Social media platforms were reported by 44% of the surveyed businesses (n = 11), making them the predominant digital tool. This result suggests a preference for platforms that offer broad visibility, ease of access, and continuous interaction with consumers. Instant messaging applications, such as WhatsApp, were cited by 36% of the MSEs (n = 9), reflecting the value placed on direct, real-time, and personalized communication. This finding reinforces the role of these tools as key channels for customer engagement and relationship management.

E-commerce platforms were utilized by 12% of respondents (n = 3), indicating a modest yet growing trend toward the adoption of structured online sales channels. Finally, only 8% of the companies (n = 2) reported using proprietary websites, a result that may be attributed to cost constraints, limited technical expertise, or the lower immediacy of communication compared to more interactive digital tools. Overall, the findings point to a selective and strategic integration of digital technologies among Maputo’s MSEs, with a clear emphasis on solutions that combine low implementation costs, user-friendliness, and strong potential for customer interaction.

Figure 1. Main digital tools used by MSEs in Maputo City (2020-2023)

The data presented in Table 1 shows the distribution of the social networks most used by micro and small enterprises (MSEs) in the city of Maputo. WhatsApp stands out as the main platform, mentioned by 15 out of the 25 companies surveyed, representing 60% of the sample. Facebook was then mentioned by 7 companies (28%) and Instagram by 3 companies (12%). None of the participating companies mentioned LinkedIn as a priority platform. The dominance of WhatsApp shows a clear preference for tools that allow direct, immediate communication and have the potential to facilitate business transactions in an agile and informal way. This distribution shows a strategic adoption of digital platforms that combine ease of use, low operating costs and high potential for interaction with the target audience, especially in contexts with technological and financial limitations.

Table 1. Main social networks used by MSEs in Maputo city (2020-2023)

As shown in Figure 2, 48% of micro and small enterprises (n = 12) started using digital platforms before 2020, indicating a prior movement towards technological incorporation in the local business environment. However, a significant number of companies started to adopt these tools precisely in 2020, with 6 companies (24%) reporting the start of their digitalization in this period. In subsequent years, the pace of adoption was more gradual, with four companies (16%) starting digitization in 2021, two (8%) in 2022 and only one (4%) in 2023. These data suggest that 2020, marked by the start of the COVID-19 pandemic, acted as a catalyst for digital transformation in Maputo’s MSEs, reflecting an adaptive response to the increasing demand for digital services and the need to maintain business activity in a scenario of face-to-face restrictions.

Figure 2. Period when MSEs will start using social media in Maputo City (2020-2023)

Based on the data collected from MSEs in the city of Maputo, there was considerable variation in the frequency of updating content on digital platforms. The majority of companies reported publishing weekly, representing 40% of the sample (n = 10). A significant group, made up of 8 companies (32%), reported publishing daily. To a lesser extent, 4 companies (16%) reported that they update their content monthly. Finally, 3 companies (12%) reported that they publish sporadically or rarely. These results are detailed in Table 2.

Table 2: Frequency of publication of commercial content by MSEs in Maputo City (2020-2023)

Analysis of the data on the use of social networks to make sales or payments revealed statistically significant differences between the frequencies of use (p < 0.05). It was observed that 36% of MSEs (n = 9) carry out commercial transactions weekly through these platforms, while 32% (n = 8) said they use them daily. A smaller percentage of companies reported monthly use (20%, n = 5) and only 12% (n = 3) rarely use these channels to carry out transactions (Table 3).

Table 3. Use of social media in business transactions by MSEs in Maputo city (2020-2023)

To assess the influence of digital tools on the commercial performance of micro and small enterprises, the proportion of sales volume directly attributed to these platforms was analyzed was found that (48%) of the companies reported that between 51% and 75% of their sales originated from these means. Another (36%) stated that more 75% of their sales came from such tools, while (16%) indicated a proportion between 25% and 50%.it is worth noting that none of the surveyed companies report less than 25% of their sales resulting from the use of digital tools (Table 4).

Table 4. Sales volume directly associated with digital tools in MSEs in Maputo city (2020-2023)

The correlation between social media posting and sale volume among MSEs in Maputo city (2020-2023)

Based on data collected from 25 micro and small enterprises a simple linear regression was conducted to assess the relationship between the frequence of social media posting and the revenue generated from online sales (Table5).

Table 5. Linear Regression Results between social media Posting and Sales Volume among MSEs in Maputo city (2020-2023)

The correlation coefficient (R) was 0,273, indicating a weak positive association between the two variables. The coefficient of determination (R²=0,075) shows that only 7,5% of the variation in online revenue can be explained by de posting frequency. The estimated coefficient for the predictor variable (posting frequency) was 0,015, with a p-value of 0,187. This result is not statistically significant, as the p–value exceeds the conventional 0,05 threshold. The 95% confidence interval for this coefficient ([-0,008;0,039]) also includes zero further indicating the absence of statistical evidence for a linear effect of posting frequency on online revenue.

Thus, it is concluded that in this study the frequency at which business publish content on social media did not prove to be a determining factor for the volume of revenue generated through digital sales.

DISCUSSION

Data analysis revealed that MSEs located in the city of Maputo preferentially use digital tools that facilitate direct communication with consumers. Wibawa, Baihaqi, Nareswari, Mardhotillah and Pramesti (2022) argue that companies use social networks to build and promote their brands, thus reaching a wider audience at lower costs. Social networks and instant messaging applications emerged as the most adopted resources, demonstrating a clear preference for platforms that offer accessibility, real-time interaction, and ease of use, which aligns with Nuseir (2020), who highlights that the primary motivation for using social networks is related to ease of use. This choice of agile solutions with low operating costs is consistent with the profile of small companies, which typically operate with limited resources and require efficient channels to reach their audience. Carvalho (2023) observes that practicality and easy access are key factors driving the adoption of digital technologies in this segment, reinforcing the idea that these tools represent a strategic alternative with high potential return.

The prominence of WhatsApp as the main social network used by MSEs confirms this trend of prioritizing platforms that combine personal communication and service agility. Platforms like WhatsApp, Instagram, and Facebook have stood out for their impact on the survival of small and medium-sized enterprises, as Rahayu, Masduki and Ellyanawati (2023) argue in their study of the use of social networks by female entrepreneurs in Indonesia during the COVID-19 pandemic. The use of this tool is not limited to social interaction but extends to commercial functions, such as the use of WhatsApp Business, which offers features specifically designed for small entrepreneurs. This is corroborated by Lestari, Sulastri, Shihab and Andriana (2024), who state that companies use social networks to promote products and sales. According to SEBRAE (2022), features such as product catalogs, automatic messages, and service tags make the experience smoother for both consumers and suppliers. Júnior (2020) complements this analysis by emphasizing that platforms that prioritize direct exchange contribute significantly to customer loyalty and transaction efficiency, aspects that are increasingly important in today’s competitive environment.

Regarding the timing of digital platform adoption, it was found that many companies began this process even before the pandemic, demonstrating a gradual move towards technological incorporation. However, there was a significant increase in adoption during the pandemic period, suggesting that the crisis context acted as a catalyst for the digital transformation of some MSEs. This finding aligns with the perspective of Pereira and Bernardo (2016), who argue that companies with greater structural flexibility tend to adapt more quickly to adverse scenarios, using digital solutions as mechanisms for resilience and innovation. This also corroborates Rahayu, Masduki and Ellyanawati (2023), whose study results showed that social networks were a great ally for female entrepreneurs during the pandemic, not only revolutionizing their way of doing business but also improving customer interaction. Thus, digitalization not only represented a response to the crisis but was consolidated as a strategy for modernization and market repositioning.

The frequency of content publication on social networks also emerged as a relevant factor in analyzing the digital presence of MSEs. A significant number of companies demonstrated regular updates, reflecting consistent efforts to maintain visibility and engagement, however, the study also showed the benefits attributed to publication frequency do not translate into direct gains, they exert minimal influence on the sale volume. According to Ningrum and Roostika (2021) and Al-Haddad, Ayesh, Al Hassan, Abu Taleb, Abu Taleb and Al Otaibi (2021), marketing activities conducted through social networks positively influence consumer interaction, affecting demand and the visibility of the company. Rachmad (2022) argues that companies that achieve engagement in their campaigns have better chances of retaining customers. This behavior shows an understanding, albeit incipient, of the importance of consistency in digital communication as a competitiveness factor. Nascimento et al. (2019) point out that regular content production strengthens the bond with consumers, promoting brand recognition and trust. Similarly, Ferreira and Guardia (2023) emphasize that maintaining a continuous flow of publications helps build a solid institutional image and expand the commercial reach of small businesses.

Finally, it was observed that, in addition to their promotional function, social networks have been effectively incorporated into sales and payment processes, becoming operational tools in the commercialization dynamics. Rahayu, Masduki and Ellyanawati (2025) argue that the effective use of social networks during the pandemic was crucial for the continuity of businesses. The frequent practice of transactions via digital platforms demonstrates the growing integration of these technologies into the daily lives of MSEs, reinforcing their functionality as management and customer relationship tools. As Pereira and Bernardo (2016) argue, the daily use of digital resources not only favors business performance but also enhances the flexibility of internal processes, promoting greater adaptability to market demands. This is further corroborated by Al-Haddad et al. (2021) and Lestari, Sulastri, Shihab and Andriana (2024), who confirm that the adoption of social networks for business practices has a positive impact, resulting in increased direct sales. Although previous studies (Rahayu et al., 2025; Lestari et al., 2024), suggest that social media adoption can positively impact sales, our results indicate that posting frequency alone may not suffice to drive online revenue, highlighting the complexity of digital engagement factors.

CONCLUSION

The results of this research show that micro and small enterprises (MSEs) in the city of Maputo have increasingly adopted digital platforms as strategic tools for communicating, promoting and marketing products and services. WhatsApp stood out as the main platform used, showing a preference for channels that offer practicality, accessibility and direct interaction with customers. The analysis revealed that a significant number of companies began their digital journey before 2020, with the COVID- pandemic playing a major role in accelerating this process. There was also variation in the frequency of publications, with a higher incidence of weekly and daily updates, reflecting efforts to have an active digital presence. However, statistical analysis revealed that the frequency of posts did not significantly impact online revenue, suggesting that mere regularity of publication is not sufficient to generate sales. The frequent use of social networks for commercial interaction reflects their growing operational relance.  While this study found no statistically significant link between posting frequency and online revenue, the strategic use of platforms such as WhatsApp and Instagram remain relevant for improving customer interaction and maintaining market presence. It was observed that social media, in itself, does not significantly influence the sales volume of these companies. It is important to acknowledge that the small sample size composed of only 25 micro and small enterprises located in the Maputo city, represents a significant limitation in terms of generalizability. Although the data collected provide relevant insights into the use of digital platforms in the local context, these findings cannot be broadly extrapolated to the wider universe of MSEs in Mozambique without due caution. Therefore, the results should be interpreted as reflections of a specific reality, offering exploratory and guiding contributions for future research involving larder and more representative sample. The inclusion of more robust statistical methods and broader geographic scope in future studies could enable a more comprehensive comparative analysis and strengthen the findings presents here. For the future research is recommended to evaluate the impact of digital strategies on business performance and customer loyalty, as well as to promote training programs aimed at professionalizing digital marketing in the context of small businesses.

AUTHOR CONTRIBUTION

Cleinize Banu Fache Chale Mbiza and Cláudia de Ruvídia Augusto Viola: funding acquisition, methodology, data curation, writing original draft, supervision, and editing.

Funding

No funding was obtained for this study.

Conflicts Of Interest

The authors declare no conflict of interest.

REFERENCES

1. Adam, S., Fuzi, N. M., Ramdan, M. R., & Ismail, A. F. M. F. (2025). The effectiveness of digital entrepreneurship ecosystem toward enriching income generation: The moderating role of entrepreneurial intention. SAGE Open, 15(1), 1–16. https://doi.org/10.1177/21582440241305361
2. Al-Haddad, S., Ayesh, O., Al Hassan, S., Abu Taleb, J., Abu Taleb, F., & Al Otaibi, L. (2021). The impact of social media advertisements on purchase intentions: An empirical study on food industry in Jordan. Jordan Journal of Business Administration, 17(4), 611–624. https://archives.ju.edu.jo/index.php/JJBA/article/view/107108/12324
3. Almeida, Í. D. (2021). Metodologia do trabalho científico. Recife: Ed. UFPE.
4. Carvalho, R. J. M. (2023). A importância das redes sociais para a fidelização dos clientes (Relatório de Estágio de Mestrado). Instituto Superior de Administração e Gestão, Porto, Portugal.
5. Drummond, C., O’Toole, T., & McGrath, H. (2022). Social media resourcing of an entrepreneurial firm network: Collaborative mobilization processes. Journal of Business Research, 145, 171–187. https://doi.org/10.1016/j.jbusres.2022.02.046
6. Ferreira, F. C. R., & Guardia, G. (2023). Marketing digital através das redes sociais. Research, Society and Development, 12(12), e62121243974. https://doi.org/10.33448/rsd-v12i12.43974
7. Hassan, S., & Shahzad, A. (2022). The impact of social media usage on small and micro social commerce enterprises in Malaysia. Pakistan Journal of Commerce and Social Sciences, 16(1), 141–166. https://www.econstor.eu/handle/10419/261308
8. Instituto Nacional de Estatística (INE). (2024). Síntese de conjuntura económica nº 43, IV Trimestre de 2023. Maputo: Instituto Nacional de Estatística. http://www.ine.gov.mz/
9. Júnior, J. M. de A. (Org.). (2020). Comunicação e marketing: tendências e desafios. Campo Grande: Editora Inovar.
10. Kotler, P., Mansour, A., & Armstrong, G. (2023). Principles of marketing (Global ed., 19th ed.). Pearson Education Limited.
11. Lestari, R. B., Sulastri, S., Shihab, M. S., & Andriana, I. (2024). Social media marketing and its impact on SMEs’ business performance. KnE Social Sciences, 9(14), 503–515. https://doi.org/10.18502/kss.v9i14.16121
12. Nascimento, A. M., Luft, M. C. M. S., & Dacorso, A. L. R., Correia Neto, J. S. (2019). O uso do Facebook no relacionamento com o cliente: Um estudo comparativo entre pequenas empresas físicas e virtuais. In Encontro de Administração da Informação (EnADI), Florianópolis, SC.
13. Ningrum, K. K., & Roostika, R. (2021). The influence of social media marketing activities on consumer engagement and brand knowledge in the culinary business in Indonesia. International Journal of Research in Business and Social Science, 10(5), 34–45. https://doi.org/10.20525/ijrbs.v10i5.1314
14. Nuseir, M. T. (2020). Is advertising on social media effective? An empirical study on the growth of advertisements on the Big Four (Facebook, Twitter, Instagram, WhatsApp). International Journal of Procurement Management, 13(1), 134–142. https://doi.org/10.1504/IJPM.2020.105191
15. Paul, J., Alhassan, I., Binsaif, N., & Singh, P. (2023). Digital entrepreneurship research: A systematic review. Journal of Business Research, 156, 113507. https://doi.org/10.1016/j.jbusres.2022.113507
16. Pereira, J. A., & Bernardo, A. (2016). Empreendedorismo digital: Estudo do Projeto Negócios Digitais realizado pelo Sebrae-PR em Maringá. Desenvolvimento em Questão, 14(37), 293–327. https://doi.org/10.21527/2237-6453.2016.37.293-327
17. Rachmad, Y. E. (2022). Perception of social media marketing by users of e-commerce marketplace and online food delivery. Proceeding of The International Conference on Economics and Business, 1(1), 121–134. https://doi.org/10.55606/iceb.v1i1.209
18. Rahayu, N. S., Masduki, & Ellyanawati, E. R. N. (2023). Women entrepreneurs’ struggles during the COVID-19 pandemic and their use of social media. Journal of Innovation and Entrepreneurship, 12(1), 51. https://doi.org/10.1186/s13731-023-00322-y
19. SEBRAE. (2022). Cadernos de inovação em pequenos negócios: Comércio e serviços (Vol. 1, Nº 1). SEBRAE. https://sebrae.com.br
20. Shahzady, R. (2024). The role of social-media for micro-entrepreneurship of young startups. International Journal of Law and Policy, 2(6), 10–22. https://doi.org/10.59022/ijlp.194
21. Wibawa, B. M., Baihaqi, I., Nareswari, N., Mardhotillah, R. R., & Pramesti, F. (2022). Utilization of social media and its impact on marketing performance: A case study of SMEs in Indonesia. International Journal of Business and Society, 23(1), 19–34. https://doi.org/10.33736/ijbs.4596.2022