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Determinants of Financing of Small ‎and Medium Size Enterprises in ‎Cameroon: An ‎Empirical Analysis

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, ‎