Ngassa Martin, Nongni Clodiane Lea and Kueda Wamba Berthelo
Volume 4 Issue 1 | Mar 2021
DOI: 10.31841/KJEMS.2021.9
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Abstract
This study is to investigate the determinants of access to finance by Small and Medium sized Enterprises (SMEs) in Cameroon. 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, success of the manager and investment capacity are significantly associated with the probability of SMEs access to credit. Results portray 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 SMEs access to credit. Based on the results, it’s recommended that government at all levels set 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,