Cameroon: Characteristics of Entrepreneurs and SMME Performance

Abstract

Small-, medium-, and micro-sized enterprises (SMMEs) constitute a vast majority of businesses in Cameroon and are a vital source of its economic growth, dynamism, and flexibility. SMMEs as economic agents are not only built on their intrinsic qualities, but also rely on information from the business environment. This chapter assesses the impact of entrepreneurial characteristics on the performance of SMMEs. The data used for this study are 'the General Census of Companies in Cameroon,' conducted with 93,969 companies by the National Institute of Statistics (INS). The study uses multiple regressions to assess the direct effects of entrepreneurs' characteristics on the performance of their SMMEs. A statistical analysis of the data reveals that men (60 %) are more entrepreneurially active than women and are mostly less than 50 years old (80 %). Econometric analyses show that characteristics such as gender, age, training, level of education, country of origin, and the share of capital of an entrepreneur significantly influence a SMME's performance. Further, the social networking capacity of entrepreneurs facilitates economic action and allows them to expand the scope of their businesses by saving resources and leveraging exclusive resources and opportunities. These relationships help the entrepreneurs transform human and financial resources into profit. The level of education feeds into a persistent entrepreneurial logic, and vocational training received by Cameroonian entrepreneurs determines their career opportunities and the performance of their ventures. NR - 52 PU - SPRINGER-VERLAG SINGAPORE PTE LTD PI - SINGAPORE PA - 152 BEACH ROAD, #21-01/04 GATEWAY EAST, SINGAPORE, 189721, SINGAPORE