
Contents
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31.1 Introduction 31.1 Introduction
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31.2 An Overview of SMEs and the Banking Sector in Cameroon 31.2 An Overview of SMEs and the Banking Sector in Cameroon
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31.2.1 The Small and Medium-sized Enterprises 31.2.1 The Small and Medium-sized Enterprises
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31.2.2 The Banking Sector 31.2.2 The Banking Sector
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31.2.3 Mobile Banking in Cameroon 31.2.3 Mobile Banking in Cameroon
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31.3 Review of Previous Studies 31.3 Review of Previous Studies
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31.4 Estimation Method, Data, and Variables 31.4 Estimation Method, Data, and Variables
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31.5 Estimated Results 31.5 Estimated Results
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31.5.1 Correlation Results 31.5.1 Correlation Results
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31.5.2 Regression Results 31.5.2 Regression Results
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31.6 Conclusion and Policy Suggestions 31.6 Conclusion and Policy Suggestions
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References References
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31 Financing Small and Medium-Sized Enterprises in Cameroon
Get accessRegina Nsang Tawah, Bowie State University
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Published:26 January 2023
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Abstract
This chapter presents an overview of the small and medium enterprises sector as well as the banking sector in Cameroon. Data from various sources show that the banking sector is highly concentrated and the majority of the interests are foreign. The banking sector serves about 15 percent of the population. The chapter further uses firm-level data from the 2016 World Bank Enterprise Survey on the characteristics of SMEs in Cameroon for some estimations to determine the effect of the characteristics of the firm on SMEs’ access to working capital in banks. The results show that the size of the firm, its legal status, and some foreign activities could improve access to bank finance for SMEs. A second regression to determine firm characteristics that affect access to investments revealed that firm size and legal status were the only statistically significant variables. Given that access to funding is significantly related to the size of the firm, medium to large firms have a clear advantage relative to smaller firms in obtaining the bank financing for both working capital and investment. SMEs in Cameroon will benefit from more opportunities to build relationships with the banks. The banks could carry out intentional outreach to SMEs for less formal activities and the government promotion apparatus could leverage their resources by adding connecting SMEs to the private sector banks since their presence is limited to a few cities.
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