Exploring The Hindering Factors Of Credit Facilities On Sustainability Of SMES In Douala Cameroon

Mbiziwo Glorine Ngwana FINAL thesis

Small and Medium-size Enterprise (SMEs) plays a significant role in the development of every economic and stands over 95% of its contributions (World Bank, 2019). These SMEs make up majority of businesses, and have impact on key economic indicators (Civelek, 2021; Lu, Wu, & Liu, 2020). Cameroon’s SMEs comprise most of its businesses and are the country’s main engines of economic growth. Cameroon Tribune interviewed the Cameroon Minister of SMEs on the 25th of October 2017, and he claimed SMEs contribute 95% to this economy. The implementation of an environment that is suitable for their growth and sustainability (Farrell, Oczkowski, & Kharabsheh, 2018) is vital because studies shows that they face challenges with easy loan access (Civelek, 2021). The aim of this study is to explore and analyze the hindrances to credit access by SMEs and the impacts on their businesses with the goal to bring mitigation solutions for a favorable credit deal.


This study is based on economic theories of Macmillan Gap Theory, Credits Admeasure Theory and information asymmetry. The research was qualitative based on phenomenological approach. Target participants were owners and managers of SMEs chosen through purposive sampling. Focus group discussions was adopted as data collection tools for the following questions: What are the factors hindering easy access to loans? What are the impacts of these hindering factors on SMEs? What can be done to improve or have an easy loans access? Data was analyzed through thematic analysis. The results indicate the need of Business model, computerized system, credibility of clients, credit bureau system, know your clients, mind-set, right people, state protection, and top entrepreneurs as mitigation solutions to combat the hindrances and impacts. The results would impact on government policy review, financial institution funding schemes and the SMEs. Future studies should consider areas as; duplicating research with financial institution; exploring other regions of Cameroon; Loan without collateral security etc


Item Type: 
Unicaf University - Zambia
Depositing User: 
Mbiziwo Glorine Ngwana
Date Deposited: 
15 February 2024 09:58