Analysis Of Factors Affecting Enterprises Growth And Effectiveness In Developing Economies

The importance of Small and Medium-sized Enterprises(SMEs)in Cameroon is gaining attention and the government has demonstrated remarkable interest in enhancing their performance.The major question remains on their low contribution to the economic growth of country despite their huge potential.The objective of this research was to apply scientific methodology to identify and analyze the factors in the Cameroonian business environment that hamper SME growth and effectiveness.This study considers the performance and effectiveness of SMEs in terms of their ability to create more sustainable jobs over time.Analysis was based on a survey of a random sample drawn from two biggest Cameroonian cities,Douala and Yaoundé,who officially account for more than 94% of SMEs in Cameroon.The reliability or internal consistency of the data set was determined by means of the Cronbach‘s Alpha procedure.The factors that impact on the SME growth and effectiveness were empirically analyzed through simple linear regression.In-depth analysis of the relationship between years of experience and SME success over and above internal and external management factors was accomplished through application of the hierarchical linear regression approach.The study concludes that SME longevity alone is not an accurate gage of their business prosperity.It is therefore imperative to consider a number of internal management factors as well as the external environment when designing policies aimed at enhancing the small sector economy in Cameroon.The analysis offer important insights of the economic environment and propose ideas and changes that all economic players should pay attention to the growth of SMEs in Cameroon.