ABSTRACT

This study explores the factors affecting the performance of Micro and Small Enterprises (MSEs) in Bamenda, Cameroon. MSEs play a crucial role in driving economic growth and providing employment in Cameroon. However, many face challenges that hinder their growth and sustainability. This research aims to identify and analyze the key factors influencing the performance of MSEs in Bamenda, focusing on internal business practices and external environmental factors.

A mixed-method approach was adopted, combining qualitative interviews with MSE owners and quantitative surveys of their business operations. The interviews aimed to understand the challenges and opportunities that MSEs encounter in their daily operations. The surveys gathered data on financial management, access to capital, market conditions, and government support. The study also reviewed existing literature on the performance of small enterprises, particularly in the context of developing economies.

The findings reveal that several key factors impact the performance of MSEs in Bamenda. Access to capital was identified as a major constraint, with many MSEs struggling to secure financing for expansion. Poor financial management and limited business planning were also common challenges. Additionally, market competition and lack of business diversification negatively affect their sustainability. External factors such as political instability, infrastructure deficits, and inadequate government support further exacerbate the difficulties faced by these enterprises. Despite these challenges, some MSEs have managed to thrive by adopting innovative strategies and leveraging local networks.

The study concludes that improving the performance of MSEs in Bamenda requires a multi-faceted approach. Recommendations include enhancing access to finance through microfinance institutions and government programs, providing financial management training to entrepreneurs, and improving infrastructure. Government policies should also focus on supporting MSEs through better regulatory frameworks and creating a conducive environment for business growth. By addressing these factors, MSEs in Bamenda can significantly improve their performance and contribute to local economic development.

Keywords: Micro and Small Enterprises, performance, Bamenda, access to capital, financial management, government support, market competition, Cameroon.