The Financing of Small and Medium Size Enterprises in Cameroon

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 7

Year of Publication : 2020

Authors : Ngassa Martin, Nongni Clodiane Léa, Kueda Wamba Berthelo

10.14445/23939125/IJEMS-V7I7P110

How to Cite?

Ngassa Martin, Nongni Clodiane Léa, Kueda Wamba Berthelo, "The Financing of Small and Medium Size Enterprises in Cameroon," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 7, pp. 74-79, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I7P110

Abstract:

This study is out to investigate the determinants of access to finance by Small and Medium-sized Enterprises (SMEs). To achieve the objective of this study, a sample research plan was used where the data were collected at random using questionnaires from 40 SMEs. Under the prism of logistic regression, it emerges that only the interest, the success of the manager, and his investment capacity are significantly associated with the probability of SME's access to credit. Indeed, we recognize a positive and significant relationship between the manager's investment capacity and the access of SMEs to financing.  On the other hand, there is a negative and significant relationship between interest and managerial success and the probability of SME's access to credit. Based on the results, it’s recommended that the government at all levels step up its assistance to small businesses in terms of providing direct financial assistance, organization of seminars, workshops, and training for small business owners on how to run a successful small business. The government should also oversee the reduction in interest rates so that many can be encouraged to take out loans.

Keywords:

Loan, SMEs, Microfinance, manager.

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