The impact of innovation on formalization and job creation of informal SMEs in Cameroon: Evidence from the World Bank Enterprise Survey

Faustine Kede Ndouna and Roger Tsafack Nanfosso

African Journal of Science, Technology, Innovation and Development, 2024, vol. 16, issue 5, 561-574

Abstract: This study aims to examine the impact of innovation on the formalization and job creation of informal SMEs in Cameroon, using data from the World Bank Enterprise Survey 2016. The study found that while technological innovation increases the chances of formalizing a firm, product innovation reduces it. The jobs created are proportional to firm size and the nature of the firm’s innovations. The results highlight the need to design the adoption of technological innovations by informal SMEs and encourage the registration of the intellectual property of new products created by them. The study contributes to the understanding of the role of innovation in enabling informal SMEs to generate income and employment, which is essential for sustainable development in African countries. The study also suggests that innovation can be a driver of firm growth, but not necessarily formalization. Overall, the study emphasizes the need for policies that support the adoption and diffusion of innovations by informal SMEs in Cameroon.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/20421338.2024.2336750 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rajsxx:v:16:y:2024:i:5:p:561-574

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rajs20

DOI: 10.1080/20421338.2024.2336750

Access Statistics for this article

African Journal of Science, Technology, Innovation and Development is currently edited by None

More articles in African Journal of Science, Technology, Innovation and Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().