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Research proposal aminu 2

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RESEARCH PROPOSAL
TOPIC : FACTORS AFFECTING
ENTREPRENEUSHIP IN CAMEROON
INTRODUCTION
Population expansion and resource availability have been the basis for many
entrepreneurial activities around the world. The presence of resources and the
continuous drive to provide the ever growing needs of man has been a fortune for
many entrepreneurs. Unfortunately, this is not a general rule as there are resources
rich areas with little or no entrepreneurial activities. Within the context of this lack of
standard rule for the development of entrepreneurship, this paper investigates the
determinants of the demand for entrepreneurship in Cameroon. After testing for the
short and long run relationship, the study found out that population growth,
technology and globalization negatively affects the demand for entrepreneurship in
Cameroon while economic development positively and significantly determines the
demand for entrepreneurship.
LITERATURE REVIEW
There are a lot of problems that bedevil enterprises and stunt their growth.
Although there are some problems peculiar to a particular country, the challenges
faced by enterprises in different countries and geopolitical divisions are basically the
same. For instance, a survey of Turkish SMEs by Organisation for Economic
Cooperation and Development (OECD) in 2004 showed that they were suffering the
consequences of policy inconsistency, poor access to finance, insufficient know-how
and low level of technology, lack of managerial skills and so many others. SMEs are
considered the engines of growth in developing countries. In Cameroon SMEs
account for over 90% of the country’s economy and contributes 34% of GDP yet only
20% receive a credit line.
The growth of enterprises in Africa requires adequate supply of financial capital.
However, lack of finance has termed as an impendent to such growth

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Small and Medium size enterprises are owned by one person or a small group of
people and managed by their owners, who with all management usually with the
other little help. In our country most of Micro and Small enterprises launches without
a feasibility report. Moreover, wherever such reports were prepared, the purpose
was to use them as advice to obtain institutional finance than to serve as a plan to
make the unit a success. Though majority of the entrepreneur posse production skills,
there are weak in aspect of managerial skills.
A tax system that imposes high expenses on the society. A poor executed tax
system also leads to low efficiency, high collection changes, Waste of time for
taxpayers and the staff and the low amounts of received taxes and the deviation of
optimum allocation of resources (Farzbad, 2000). Existed empirical evidence clearly
indicates that small and medium sized businesses are affected disproportionately by
these costs: when scaled by sales or assets the compliance costs of SMEs are
higher than for large businesses (Weichenrieder, 2007). Among the factors militating
against SME tax compliance whichare: high tax rates, low efficiency, High collection
charges, waste of time for taxpayers and the staff, and the low amount of received
taxes and deviation of optimum allocation of resources (Farzbod, 2000)
Also, lack of structure: A structure in an organization is very important for a business
to get the best out of its employees. Desai & Vasant (1998) acknowledged the fact
that, it is even more important for an entrepreneur because there is no way to
measure the productivity of an employee without a proper structure. Their colleagues
can only feel their productivities. Hence to get the best out of any team, it is
important to have the proper structure in the team. The hierarchy of order must be
maintained in a company as much as it needs to be maintained in any other
foundation. And lastly, lack of a plan if an entrepreneur wants to see a change in the
growth of his business he/she needs a plan. It is a long drawn out process that does
require a certain amount of thinking. Today, the society is, rapidly changing and
developing. The challenges that the world face today is the rate of fluctuations that
are taking place in our civilization, causing us to find ways to meet up to our
changing society‟s expectations. Mundial (2013) The World Bank‟s Doing Business
Report of 2013 points out that, starting a business in Cameroon is still a difficult
process that requires five steps and it takes at least 15 days. Doing Business Report
further ranks Cameroon one of the worst countries among those valued regarding
enforcing a contract or the burden of tax payments. It is cumbersome for young
entrepreneurs to access capital to start their businesses (Muñoz, 2010).According to
St-Pierre et al (2015), Infrastructure in Cameroon still needs substantial improvement;
poor roads and unreliable electricity constitute major constraints on businesses.
Cameroon equally has very low internet determination.
The challenges entrepreneur‟s faces differ from continent to continent and also differ
from country to country. These challenges could be internal and/or external
challenges and Cameroon is no exception to these challenges. Despite the problems
we face in Cameroon, a good number of youths are determined to own businesses
and become entrepreneurs Dinga-Nyoh (2005). The creation of the Ministry of Small
and Medium Sized Enterprises in Cameroon was to promote this entrepreneur spirit
in Cameroon. Groups and institutions like Harambe Cameroon, Computer and

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RESEARCH PROPOSAL TOPIC : FACTORS AFFECTING ENTREPRENEUSHIP IN CAMEROON INTRODUCTION Population expansion and resource availability have been the basis for many entrepreneurial activities around the world. The presence of resources and the continuous drive to provide the ever growing needs of man has been a fortune for many entrepreneurs. Unfortunately, this is not a general rule as there are resources rich areas with little or no entrepreneurial activities. Within the context of this lack of standard rule for the development of entrepreneurship, this paper investigates the determinants of the demand for entrepreneurship in Cameroon. After testing for the short and long run relationship, the study found out that population growth, technology and globalization negatively affects the demand for entrepreneurship in Cameroon while economic development positively and significantly determines the demand for entrepreneurship. LITERATURE REVIEW There are a lot of problems that bedevil enterprises and stunt their growth. Although there are some problems peculiar to a particular country, the challenges faced by enterprises in different countries and geopolitical divisions are basically the same. For instance, a survey of Turkish SMEs by Organisation for Economic Cooperation and Development (OECD) in 2004 showed that they were suffering the consequences of policy inconsistency, poor access to finance, insufficient know-how and low level of technology, lack of managerial skills and so ...
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