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Regulation, awareness, compliance and SME performance in Cameroon's manufacturing and retail sectors

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  • Oludele A. Akinboade
  • Emilie Kinfack

Abstract

Purpose - The purpose of this paper is to discuss the regulation, awareness, compliance and performance of small and medium‐size enterprises (SMEs) in Cameroon's Central and Littoral regions, focusing on the manufacturing and retail sectors. Design/methodology/approach - The full survey was conducted on 700 randomly selected SMEs which have identifiable business locations. From this, only 575 enterprises were retained for analysis after performing the coherence test. Findings - Businesses registered for tax and those in the manufacturing sector see tax regulation as a burden. Those having opinions that regulation is rigid, inconsistent and that there is corruption also opine that regulation is negatively impacting on business. High compliance with customs and municipal regulations significantly negatively affect business development. On the other hand, high compliance with health and safety as well as trade regulations is good for SME development. Businesses registered with the Ministry of Trade tend to be more compliant, while those registered with the Municipality are not. Practical implications - Overall, it is important that government should create an enabling environment for the development of the SMEs in Cameroon. Originality/value - The number of studies focusing on the relationship between regulation and business performance in Africa is limited. Hence, the contribution of this paper is to enrich our understanding of this important field.

Suggested Citation

  • Oludele A. Akinboade & Emilie Kinfack, 2012. "Regulation, awareness, compliance and SME performance in Cameroon's manufacturing and retail sectors," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(12), pages 933-950, October.
    • Handle: RePEc:eme:ijsepp:v:39:y:2012:i:12:p:933-950
    DOI: 10.1108/03068291211269073
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    References listed on IDEAS

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    1. Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 10(2), pages 201-246, October.
    2. International Finance Corporation & World Bank, "undated". "Doing Business Economy Profile 2012," World Bank Publications - Reports 26973, The World Bank Group.
    3. Francis Nathan Okurut, 2008. "Determinants of Microenterprise Performance in Uganda," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(1), pages 77-87, January.
    4. International Finance Corporation & World Bank, "undated". "Doing Business Economy Profile 2012," World Bank Publications - Reports 26931, The World Bank Group.
    5. Sudath Weerasiri, 2012. "Attitudes and Awareness towards Environmental Management and its Impact on Environmental Management Practices (EMPs) of SMEs in Sri Lanka," Journal of Social and Development Sciences, AMH International, vol. 3(1), pages 16-23.
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    Cited by:

    1. Alhammadi, Abdulnaser & Shahadan, Faridah, 2014. "The Determinants of Growth Performance of Small Services Enterprises in Yemen," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(1), pages 35-48.
    2. Oludele Akinloye Akinboade & Anrich Daseman & Trevor Taft & Victor M.S Molobi, 2017. "Regulation, Cross Border Migrants and the Choice of Remittance Channels in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 201-214.
    3. Christian Hauser, 2022. "Trade-Control Compliance in SMEs: Do Decision-Makers and Supply Chain Position Make a Difference?," Journal of Business Ethics, Springer, vol. 179(2), pages 473-493, August.

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