MICROFINANCE SERVICES AND THE GROWTH OF SMALL AND MEDIUM SIZE ENTERPRISES: EVIDENCE FROM THE COMMUNITY CREDIT COMPANY IN THE DOUALA MUNICIPALITY, CAMEROON

Achamoh Victalice Ngimanang ()

International Journal of Business Strategies, 2020, vol. 5, issue 1, 27 - 50

Abstract: Purpose: This paper assesses the role of microfinance services on the growth of small and medium size enterprises in Douala, Cameroon. Methodology: The paper adopts a mixture of Survey Research and a causal research design. Data were collected mainly through likert scaling questionnaires administered effectively to 57 customers of CCC Plc selected at random. Multiple regression analysis and product moment correlation techniques were used with associated statistical tests (Pearsons, student- t, and ANOVA or F tests). Findings: Considering three business growth enhancing microfinance services: loans, savings and assistance, it was found that loans granted by MFI and Saving service are paramount for the likelihood of SMEs in Cameroon. The effects of saving and loans were positive and highly significant in contributing to the profitability as well as return on assets of the small enterprises. Assistance given by MFIs had positive relation but was not very significant as there are not actually put in place given that Most MFI are profit outfits. Unique contribution to theory, practice and policy: Important recommendations emanated from the results. One of such proposal is that the cost and conditions of savings and lending by MFIs should be relaxed as an instrumental strategy to foster the growth of SMEs. Keywords: Microfinance services, growth of SMEs, regression analysis, Cameroon

Date: 2020
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