Youth unemployment is an endemic problem that threatens the stability, social fabric and economic progress of Mozambique. The belief of the leadership and stakeholders in Mozambique is that youths are unemployed because of low levels of entrepreneurship amongst this crucial group in Mozambique. Through entrepreneurship, youths can create small and medium enterprises (SMEs), manage them, earn income and alleviate themselves from poverty. Although policy makers are well aware of the need and importance of SMEs as employment generators, little is known on how or at what stage are SMEs crucial at employment creation especially for the youth. The objective of this study was to evaluate the performance of SMEs in Greater Maputo and to determine how they impact in employment creation. A research using quantitative methodology was carried involving 550 SMEs in Maputo city. Maputo the capital of Mozambique was chosen as the centre of the study to represent the country as a whole, because Maputo is the main centre of economic activities of the country. The sample was chosen using stratified random sampling strategy. A face to face interview was conducted using structured, close-ended questionnaires to collect the primary data. The study found that it was actually start-up SMEs that were more prone to create new employment among the youth in Mozambique, rather than existing and mature SMEs. It was recommended that an overhaul of the whole support system was required in Mozambique, especially targeted at start-up SMEs.
