The relevance of SMEs to the economy is already accepted and established worldwide. They generally employ the greatest percentage of the labor force in most economies and contribute considerably to the GDP, economic stability, and growth. However, despite the significant role that they play, this category of businesses still experience very high failure rates in most economies, especially in Africa, and Cameroon inclusive. That notwithstanding, as SMEs in the Cameroonian economy struggle with elevated failure rates, the inhabitants of the Western Region of this country also referred to as the Bamelikes are thriving considerably in their entrepreneurial activities. It is thus the gaol of this research to empirically identify which factors are determinants of this success.
This survey study made use of an approved questionnaire administered to 403 SME owners and / or managers in the aforementioned region of Cameroon. The binary logistic regression analysis and the correlation analysis were employed in the analysis of the collected data.
Findings from this study revealed that access to capital, industry experience, as well as the availability of markets, are determinants of SME Success / Failure in this region. It was also found out that their main entrepreneurial drives are ‘fear of extreme hunger and poverty’ and ‘lack of adequate employment.’ Industry choice and the choice of growth strategy proved to have statistically significant relationships with SME Success / Failure in this region.
From these findings, it is recommended that more should be done to foster SMEs in this region since they provide an outlet from poverty. In addition to that, to increase chances of success, existing entrepreneurs, as well as potential entrepreneurs, should consider getting into industries with already established and available markets. In the same light, more has to be done to increase SME access to formal financing. Finally, it is recommended that existing owners and/or managers of SMEs in this region pay attention to these determining factors to improve their chances of success.