INFLUENCE OF GOVERNMENT REGULATIONS AND INSTITUTIONS ON ENTREPRENEURIAL PERFORMANCE IN CAMEROON

Darma Mahadea () and Martin Kabange
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Darma Mahadea: School of Economics and Finance, Pietermaritzburg Campus, University of Kwazulu-Natal (UKZN), South Africa
Martin Kabange: School of Economics and Finance, Pietermaritzburg Campus, University of Kwazulu-Natal (UKZN), South Africa

Journal of Developmental Entrepreneurship (JDE), 2019, vol. 24, issue 04, 1-17

Abstract: Regulations and institutions influence entrepreneurship. This paper investigates whether government regulations and finance institutions help or hinder entrepreneurial performance at the small firm level in Yaoundé and Douala, Cameroon. Performance is examined in terms of growth in sales revenue, profits and labor employment. The results show that ‘government regulations’ have a strong and significantly adverse impact on sales revenue performance. Furthermore, ‘awareness of source of funds’ is found to significantly amplify sales revenue, and profit performance. Government support is significant to growth in labor employment, sales revenue and profit. However, ‘government regulations’ have a consistently negative influence on performance, even when using different indicators. Consequently, Cameroon should provide a more conducive environment for entrepreneurship to flourish and for small firm sales revenue, profit and employment to grow through the simplification or removal of unnecessary regulations and a provision of greater financial support.

Keywords: Regulations; institutions; entrepreneurship; support; performance (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1142/S1084946719500274

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