The interplay of different types of capital on amplifying small business entrepreneurship performance in Cameroon: a case of Douala and Yaounde.

Doctoral Degree. University of KwaZulu-Natal, Pietermaritzburg.There cannot be a firm without entrepreneurship, and for the exercise of effective entrepreneurship, entrepreneurial capital is indispensable. Drawing from the resource-based theory, this study assesses the interplay of social, human and financial capital on business performance in Cameroon, using a Structural Equation Modelling (SEM) approach and Principal Component Analysis (PCA). These three elements together make up the building blocks of entrepreneurial capital. The study uses a sample of 364 firms. Performance is examined in terms of growth in sales, profits and employment. The PCA isolates financial capital (FC), social capital (SC), and human capital (HC) as critical components influencing performance. HC is examined under Entrepreneur-Owner Human Capital (OHC) and LabourEmployee Human Capital (EHC). The SEM results indicate that OHC has the strongest significant effect on performance (weight 0.528), followed by FC (weight 0.420), EHC (weight 0.207) and SC (weight 0.120). Furthermore, the SEM indicated a positive and significant correlation between OHC and EHC (r = 0.61); between FC and EHC (r = 0.56); between FC and SC (r = 0.40); between OHC and SC (r = 0.34) and between SC and EHC (r = 0.32). Different elements of entrepreneurial capital complement each other in influencing performance. Investigating the constraints to business performance, five major obstacles were identified, namely: ‘financial and managerial skills’, ‘inadequate inputs’, ‘infrastructure’, ‘transaction costs and regulations’ and ‘credit access’. The study also looked at the influence of government support, regulations, and private financial institutions in hindering or amplifying business performance, using a multiple linear regression model (MLRM). The results show that ‘government regulations’ (= -0.197, p=0.004), has the strongest adverse impact on performance in terms of sales revenue. Furthermore, ‘awareness of source of funds’ was found to significantly amplify business performance in terms sales revenue (= 0.146; p=0.031) and in terms of profit (= 0.175; p=0.012). Government support was also significant to performance, in terms of labour employment (= 0.601; p=0.000); sales revenue (= 0.178; p=0.009), and profit (= 0.175; p=0.012). Government regulations have a consistently negative influence on performance, even when using different indicators

Exploring the Motives for Operating in Ghana’s Informal Slum Sector

In the developing world, slums house a sizeable amount of the urban population and most slum inhabitants are engaged in informal activities. In Sub Sahara African countries this sector has historically contributed above 50% to non-agricultural Gross Value Added. Informal sector activities in Ghanaian slums employ a substantial amount of people, who on average earn about $8 a day, a figure which is above the poverty threshold of$2 a day. Most of these slum activity operators reside in slums whereas a sizable amount reside in formal housing, a phenomenon which has led to the growth of Ghanaian urban slums. To assist these slum operators grow and someday integrate into the formal sector, it is important to find out the factors that motivated them to engage in these activities in the first place. The study employed Exploratory Factor Analysis, on a sample of 344 drawn from the two biggest slums (Sodom & Gomorrah and Akwatia Line) in Ghana’s two major cities, Accra and Kumasi respectively. The results show a set of six clusters, explaining 61% of the variation in motives for slum activities. The avoidance of government regulation was found as the main motive for one’s involvement in slum activities. Other driving forces include the ‘luxury’ of working at one’s own time, making use of one’s talents and family relations, as well as the quest for earning a higher incom

Constitutional instability and Poverty: Some Empirical Evidence

Is constitution linked to poverty difference between countries? In this article, we attempt to answer this question. We gather ideas of the temporal incoherence and the utility functions of political entrepreneurs. We have established a positive strong link between the constitutional instability, and poverty. The more a country changes its constitution, the higher the level of poverty

The Role of Gender and Personal Traits in Determining Business Performance of Ghana’s Informal Slum Businesses

Purpose: It has been established that most informal businesses in Ghana are performing well and earn incomes higher than the poverty line threshold. The current study, therefore, aims at ascertaining how one’s gender and personal traits (locus of control) affect business performance. Design/methodology/approach: To this effect, cross sectional quantitative data was obtained from 344 participants in two informal settlements in Ghana using a structured interview. The independent sample T-test was used to analyse the data. Findings: It was found out that there was no significant difference between the performances of male or female owned businesses. Furthermore, it was also discovered that there was a significant difference in the business performance of operators based on locus of control

Financial inclusion

Financial inclusion has been noted as a key driver of poverty alleviation and growth. Yet, most of the scholarly work that exists lacks a comprehensive discussion of how the poor interact with financial services and the channels through which such services can affect their livelihoods. This book offers researchers who focus on financial inclusion and African economies a one stop resource for understanding the channels of transmission for financial inclusion as well as an application of these channels through original country specific empirical papers. The book provides a back-to-basics presentation of the transmission of financial services to growth and poverty. This theoretical discussion is complemented by an empirical presentation of the various services used by the poor, with a focus on Africa. Case studies of financial inclusion in six African countries cover a broad range of topics most important to African countries and highlight the unique African setting. These empirical papers provide important learning points. Firstly, hybrid financial institutions such as cooperative financial institutions and financial social entrepreneurs are the best way to increase financial inclusion in Africa. They provide important vehicles to circumventing the restrictive and exclusive bank-based financial markets typical of African economies. Secondly, digital finance is a potent tool in improving financial access and usage in Africa, and its impact on poverty operates through both traditional and nontraditional financial instruments. Thirdly, investment in infrastructure which supports complementary markets is critical and is likely to have a greater effect on credit rationing than direct provision of credit to small businesses

Financial inclusion

Financial inclusion has been noted as a key driver of poverty alleviation and growth. Yet, most of the scholarly work that exists lacks a comprehensive discussion of how the poor interact with financial services and the channels through which such services can affect their livelihoods. This book offers researchers who focus on financial inclusion and African economies a one stop resource for understanding the channels of transmission for financial inclusion as well as an application of these channels through original country specific empirical papers. The book provides a back-to-basics presentation of the transmission of financial services to growth and poverty. This theoretical discussion is complemented by an empirical presentation of the various services used by the poor, with a focus on Africa. Case studies of financial inclusion in six African countries cover a broad range of topics most important to African countries and highlight the unique African setting. These empirical papers provide important learning points. Firstly, hybrid financial institutions such as cooperative financial institutions and financial social entrepreneurs are the best way to increase financial inclusion in Africa. They provide important vehicles to circumventing the restrictive and exclusive bank-based financial markets typical of African economies. Secondly, digital finance is a potent tool in improving financial access and usage in Africa, and its impact on poverty operates through both traditional and nontraditional financial instruments. Thirdly, investment in infrastructure which supports complementary markets is critical and is likely to have a greater effect on credit rationing than direct provision of credit to small businesses