Financing Enterprises to Boost Employment in Cameroon

Jean Marie Abega Ngono, C¨¦lestin Chameni Nembua and Moses Abit Ofeh

International Journal of Economics and Finance, 2019, vol. 11, issue 10, 77-92

Abstract: Cameroon has 93969 different enterprises (NIS, 2010) operating in varied fields aimed at fostering economic growth. The enterprises confront challenges such as infrastructural weaknesses, unfavorable business climate and poor governance (World Bank, 2013), thus leading to disappointing results in terms of economic growth. Such a situation has attracted much attention from businessmen and policy-makers alike as to what to do in order to reverse the situation for favorable job creation and economic growth. The paper aims at examining the impact of external financing to enterprises in order to offer employment in Cameroon. Econometrically analyzing a sample of 180 loan recipients and 273 non-loan recipients, using the decomposition technique of Blinder-Oaxaca (1973), results show that enterprises that received external funding were more performing and creating jobs than those that did not, especially those operating in Yaound¨¦ and Douala. A positive gap of total number of employees existed between loan and non-loan recipients estimated at 15 employees per enterprise. Also, such loans received positively amplify the actions of productive factors in Yaound¨¦ and Douala considering the number of establishments and businesses. Equally, there exist a difference due to observable characteristics of enterprises and their coefficients, contributing 181.1 and 140.12% respectively for loan and non-loan recipients. We therefore recommend that the state, financial institutions and enterprises should work in synergy to collectively improve on enterprise financing so as to boost employment in Cameroon that can lead to economic growth.

Keywords: financing; enterprises; employment; Blinder-Oaxaca decomposition technique; Cameroon (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/40842 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/40842 (text/html)

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:ibn:ijefaa:v:11:y:2019:i:10:p:77-92

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().