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Some effects of business environment on retail firms

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  • Pierre Nguimkeu

Abstract

This paper empirically tests how formal retail entrepreneurs’ perception about the business environment in Cameroon affects the performance of the retail sector. I use business owners’ responses from the 2009 Enterprise Survey to estimate an econometric model that corrects for heteroscedasticity. The results show that regulation costs, corruption, credit constraints, and lack of infrastructure negatively affect the gross margins of firms. In contrast, the competition of the informal sector -- perceived by many formal entrepreneurs as a major constraint -- is positively associated with the gross margins of formal firms. Policy implications are discussed.

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  • Pierre Nguimkeu, 2016. "Some effects of business environment on retail firms," Applied Economics, Taylor & Francis Journals, vol. 48(18), pages 1647-1654, April.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1647-1654
    DOI: 10.1080/00036846.2015.1105923
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    2. Mai Huong Giang & Bui Huy Trung & Yuichiro Yoshida & Tran Dang Xuan & Mai Thanh Que, 2019. "The Causal Effect of Access to Finance on Productivity of Small and Medium Enterprises in Vietnam," Sustainability, MDPI, vol. 11(19), pages 1-19, October.
    3. Malik Cahyadin, 2017. "Determinant Factors of Trade Industry Performance in Indonesia: AHP Approach," GATR Journals jber130, Global Academy of Training and Research (GATR) Enterprise.
    4. Florian Horky & Nicola Tretter & Jarko Fidrmuc, 2021. "Are the pandemic and innovation twins? Perceived financial obstacles, innovations, and entrepreneurial success," Economic Research Guardian, Mutascu Publishing, vol. 11(2), pages 236-254, December.

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