REPIBLIQUE DU CAMEROUN REPUBLIC OF CAMEROON

************
************
Peace-Work-Fatherland
Paix-travail-patrie
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************ MINISTRY OF HIGHER
MINISTERE DE L’ENSEIGNEMENT EDUCATION
************
SUPERIEUR
UNIVERSITY INSTITUTE OF
************ THE COAST
INSTITUE UNIVERSITAIRE DE LA COTE ************
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EXAMINING THE CHALLENGES FACED BY FINANCIAL INSTITUTION IN ENHANCING

THE GROWHT OF SMALL AND MEDIUM SCALE BUSINESS IN CAMEROON CASE OF
SELECTED MICROFINANCE INSTITUTION IN DOUALA

Presented by:
MITOGO BOSIO RAFAEL NCOGO
Supervised by:
 Mr. NGANKOU RENE

ACADEMIC YEAR 2020/2021

 PRESENTATION PLAN

INTRODUCTION

METHODOLOGY

ANALYSIS AND INTERPRETATION

RECOMMENDATION

CONCLUSION
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 INTRODUCTION
Problem Statement
The problems that emanated from poor financing include:
a) Lack of competent management which is the consequence of inability of owners to employ
the services of experts.
b) Use of obsolete equipment and methods of production because of owner’s inability to
access new technology.
c) Excessive competition which resulted from sales which is a consequence of poor finance to
cope with increased competition in the industry.

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 RESEARCH OBJECTIVES

SPECIFIC OBJECTIVE
MAIN OBJECTIVE
3) To suggest some
 The primary remedial measures to
1) To find out the solve the problem of
objective of the
problems faced by finance for the small-
study is to identify scale entrepreneurs in
small entrepreneurs
the current while availing finance Cameroon.
challenges faced from financial 4) To recommend
by the SME sector institutions in appropriate measures
with specific focus Cameroon. through which small
on challenges 2) To analyze the factors businesses can be
related to getting behind the finance gap more effectively
credit from between microfinance developed in
institutions and Small Cameroonian
microfinance
scale enterprises in economy.
institution. Cameroon.

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 RESEARCH QUESTIONS

Specific question
Main question  Does poor financing actually affect small
scale business operation?
 To what extent has
microfinance  What are the problems and challenges
institution strict of micro and small enterprises?
conditions affected  What is the implication of multiplicity of
the development of policies and regulatory measures on
small-scale small and medium enterprises?
enterprises.?

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 H0
Financial constraint is not a
serious factor militating against RESEARCH HYPOTHESIS
effective management of small
and medium enterprise.

H1
Financial constraint is a serious
factor militating against effective
management of small and
medium enterprise.
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 SIGNIFICANCE OF THE STUDY
To the organization
This research will be of prime benefit to the management and staff of small-scale business
seeking finance it will enable them identify and understand the challenges related to
getting credit from microfinance institution.

To future researchers
This study ables to access this information as it will guide them in research and equip
them with knowledge as far as obtaining finance and meeting up with such challenges.

To the researcher
As an accountant, this research will broaden my knowledge on the various challenges
face by small scale business to get funding and the factors that discourage small
businesses from borrowing from formal sources of credit.
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 METHODOLOGY
Sources of data Secondary Sources: Data Analysis
collection Primary Sources: Secondary data include methods
Data collected for this Primary data are data that both quantitative and The method for data
study was gotten from the are collected for special qualitative data and analysis depends on
primary and secondary research. they are used principally how the data that
source. in both descriptive and was collected
explanatory research. through the primary
source will be
D

o
n
a

e
c
t processed and

l
l

t
i
presented for
Validity
Reliability meaningful
According Fiona Middleton
According to Fiona Middleton analysis.
(June 2020), validity refers to
(June 2020), reliability refers to how accurately a method
the consistency of measurement. measures what it is intended
The study uses questionnaires to to measure. This study 02/08/2023 8

test the reliability of the data adopted construct validity. .

Awareness programs should be
organized by the govt. agencies
like DICC, NABARD to make • Bank officials should Bringing transparency in the
people aware of the opportunities have a more procedures of the government to
and the schemes available as only professional attitude get a clear picture of the
a limited number of people come towards the complications faced by the
across the schemes which should entrepreneurs. They entrepreneur to avail the finance.
be publicized among the masses. should give equal
importance to those
entrepreneurs who
avail loans through the
government agencies.
• To initiate more
Creating special finance cells to subsidized schemes as
To bring financial scheme for all
provide easy finance to small well as easy repayment
people irrespective of their caste
entrepreneurs. Temporary outlets procedures to
and gender. Lack of schemes to
will help the people to know encourage the
the general category of people
about the schemes available. entrepreneurs.
causes a hindrance to them.

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ANALYSIS AND INTERPRETATION

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 PRESENTATION AND ANALYSES

Figure 1: Showing educational qualification of the Figure 2: Showing number of registered enterprises.
sample respondents
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Figure 3: Showing the number of enterprises Figure 4: Showing the critical problems faced by
having business plan. the enterprises in doing their business.
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Figure 5: Showing the awareness of the entrepreneurs Figure 6: Showing the preferred source of finance of
about the schemes. the entrepreneurs.
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Figure 7: Showing the number of loan request Figure 7.1: Showing the Amount of loan approved by
approved by financial institutions. the financial institution.
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Figure 8: Figure showing the collateral asked by Figure 9: Showing the documents asked by the
the financial institution financial institutions to the entrepreneurs.

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Figure 10: Showing the estimated time of getting Figure 10.1: Showing the reasons of delay for
loan by the respondents. getting loan later than expected.
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 Figure 11: Showing the number of times the Figure 12: Showing reason for not approving the
entrepreneur(s) visited the financial institution. request for loan.
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 Figure 13: showing the problems in accessing the loan.

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 RECOMMENDATION
 Creating special finance cells to provide easy finance to small entrepreneurs. Temporary
outlets will help the people to know about the schemes available.

 Bank officials should have a more professional attitude towards the entrepreneurs. They
should give equal importance to those entrepreneurs who avail loans through the
government agencies.

 To initiate more subsidized schemes as well as easy repayment procedures to encourage

the entrepreneurs.

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CONCLUSION

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 CONCLUSION

The review of research has showed that small scale entrepreneurship plays
an important role in the economic development of the country The basic
purpose of conducting the study was to study the problems faced by the
entrepreneurs while availing the financial assistance from the financial
institution. The major findings were that financing through govt. schemes
were most popular source of financing Small sector entrepreneurs in Douala
town and its adjacent areas. The financing schemes provide credit to this
sector, but the procedures involved are lengthy. Moreover, too much of
documentation is required. Insufficient collateral and biasness are also the
major problems. The orientation program, workshops and seminars should
be organized at the District Level to provide latest information to the Small
scale entrepreneurs 02/08/2023 21
02/08/2023 22