CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Women entrepreneurs play a vital role in the economic development of countries, particularly in sub-Saharan Africa. According to a study by Kelley et al. (2015), women entrepreneurs in Africa are increasingly contributing to economic growth, job creation, and innovation. In Cameroon, women entrepreneurs are also making significant contributions to the economy, particularly in the informal sector. However, despite their importance, women entrepreneurs in Cameroon face numerous challenges that hinder their growth and development. These challenges include limited access to finance, lack of business skills, and societal norms that discourage women from taking on leadership roles. Furthermore, women entrepreneurs in Cameroon often have limited access to markets, technology, and other resources that are essential for business success. A study by Njong and Tchouassi (2018), found that women entrepreneurs in Cameroon face significant challenges in accessing finance, which limits their ability to start and grow their businesses. Additionally, a study by Foko et al. (2019) found that women entrepreneurs in Cameroon often lack the business skills and training needed to succeed in entrepreneurship. These challenges are further exacerbated by societal norms and stereotypes that view women as caregivers rather than entrepreneurs. As a result, women entrepreneurs in Cameroon often face significant barriers to entry and growth in the business sector.

The Anglophone region of Cameroon has a unique cultural and economic context that affects women’s entrepreneurship. According to a study by Konings (2019), the Anglophone region has a strong entrepreneurial culture, but women entrepreneurs in the region face specific challenges related to language, culture, and access to resources. Despite these challenges, women entrepreneurs in the Anglophone region are increasingly contributing to the local economy and creating jobs. They are also promoting innovation and creativity, which is essential for economic development. Furthermore, women entrepreneurs in the region are playing a crucial role in promoting economic growth and development, particularly in rural areas. Women entrepreneurs play a crucial role in the economic development of the Anglophone region of Cameroon. A study by Nguenang (2020) found that women entrepreneurs in the region contribute significantly to economic growth, job creation, and poverty reduction. Additionally, women entrepreneurs in the region are also promoting innovation and creativity, which is essential for economic development. They are also helping to promote economic diversification and reduce dependence on a single industry. Furthermore, women entrepreneurs in the region are creating jobs and income opportunities for others, particularly in rural areas. By contributing to economic growth and development, women entrepreneurs are improving the overall well-being of their communities.

The COVID-19 pandemic has had a significant impact on women entrepreneurs in the Anglophone region of Cameroon. According to a study by Tanga et al. (2022), women entrepreneurs in the region have faced significant challenges, including reduced access to finance, decreased demand for their products, and increased caregiving responsibilities. Despite these challenges, women entrepreneurs in the region have shown resilience and adaptability, and many have found innovative ways to survive and thrive during the pandemic. They have also played a crucial role in promoting economic recovery and development in the region. Furthermore, women entrepreneurs have demonstrated their ability to adapt to changing circumstances and find new opportunities for growth and development.

There is a need for support and empowerment of women entrepreneurs in the Anglophone region of Cameroon. A study by Ngum et al. (2023) found that women entrepreneurs in the region require access to finance, business skills training, and mentorship to succeed in entrepreneurship. Additionally, policies and programs that support women entrepreneurs, such as business incubators and accelerators, can also play a crucial role in promoting women’s entrepreneurship in the region. By providing support and empowerment to women entrepreneurs, the Anglophone region of Cameroon can unlock the full potential of women’s entrepreneurship and promote economic growth and development. Furthermore, supporting women entrepreneurs can help to reduce poverty and inequality, and promote sustainable economic development. By investing in women entrepreneurs, the region can create a more prosperous and equitable future for all.

Microfinance institutions (MFIs) have been recognized as a vital tool for promoting entrepreneurship, particularly among women in developing countries (CGAP, 2020). In Cameroon, MFIs have been instrumental in providing financial services to women entrepreneurs, who often face significant barriers in accessing traditional banking services (Makombe et al., 2020). The Anglophone region of Cameroon, which includes the Northwest and Southwest regions, has been particularly affected by the ongoing crisis, which has led to a significant decline in economic activities (ICG, 2020). As a result, women entrepreneurs in this region face significant challenges in accessing financial services, markets, and other resources necessary for their businesses to thrive (Njongmeta, 2020).

Despite these challenges, women entrepreneurs in the Anglophone region of Cameroon have demonstrated remarkable resilience and determination to succeed (Fombo, 2020). However, there is a need for more research on the impact of MFIs’ services on women entrepreneurship in this region (Tantoh, 2020). Previous studies have focused primarily on the impact of MFIs on poverty reduction and financial inclusion, with limited attention to their impact on entrepreneurship (Kpodar, 2018). Furthermore, most of these studies have been conducted in other regions of Cameroon, with limited attention to the Anglophone region (Mbih, 2019). The importance of women entrepreneurship in promoting economic growth and development cannot be overstated (World Bank, 2020). Women entrepreneurs play a critical role in creating jobs, generating income, and promoting innovation (UN Women, 2020). However, women entrepreneurs in Cameroon, particularly in the Anglophone region, face significant barriers in accessing financial services, markets, and other resources necessary for their businesses to thrive (Njongmeta, 2020).

MFIs have been recognized as a vital tool for promoting financial inclusion and entrepreneurship among women in developing countries (CGAP, 2020). MFIs provide a range of financial services, including loans, savings, and insurance products, which are tailored to the needs of women entrepreneurs (Makombe et al., 2020). However, the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon is not well understood (Tantoh, 2020). Previous studies have shown that MFIs’ services can have a positive impact on women entrepreneurship by providing access to financial services, building financial literacy, and promoting entrepreneurship skills (Kpodar, 2018). However, these studies have been limited to other regions of Cameroon, with limited attention to the Anglophone region (Mbih, 2019).

The Anglophone region of Cameroon has been particularly affected by the ongoing crisis, which has led to a significant decline in economic activities (ICG, 2020). As a result, women entrepreneurs in this region face significant challenges in accessing financial services, markets, and other resources necessary for their businesses to thrive (Njongmeta, 2020). Despite these challenges, women entrepreneurs in the Anglophone region of Cameroon have demonstrated remarkable resilience and determination to succeed (Fombo, 2020). However, there is a need for more research on the impact of MFIs’ services on women entrepreneurship in this region (Tantoh, 2020).

The purpose of this study is to investigate the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon (Tantoh, 2020). Specifically, the study aims to examine the impact of MFIs’ services on women entrepreneurs’ access to financial services, entrepreneurship skills, and business performance (Makombe et al., 2020). The study will contribute to the existing literature on the impact of MFIs’ services on women entrepreneurship in developing countries (CGAP, 2020). Furthermore, the study will provide policymakers and practitioners with insights into the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon (Tantoh, 2020). The study will use a mixed-methods approach, combining both quantitative and qualitative data collection and analysis methods (Creswell, 2014). The study will also use a survey design, with a sample of women entrepreneurs in the Anglophone region of Cameroon (Tantoh, 2020).

In conclusion, the study will investigate the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon (Tantoh, 2020). The study will contribute to the existing literature on the impact of MFIs’ services on women entrepreneurship in developing countrieAs (CGAP, 2020)

1.2 Statement of the Problem

The performance of women entrepreneurs in the Anglophone region of Cameroon remains a significant concern, with many women-owned businesses struggling to achieve sustainability and growth. Despite the potential of women entrepreneurship to contribute to economic development and poverty reduction, various factors hinder their performance, including limited access to finance, markets, and business skills. The effectiveness of microfinance institution services in enhancing the performance of women entrepreneurs in the region is uncertain, and there is a need to investigate the relationship between microfinance services and women entrepreneurs’ performance, including their business growth, profitability, and sustainability. According to a recent report by the International Finance Corporation (IFC), women-owned businesses in Cameroon face a significant financing gap, with only 14% of women entrepreneurs having access to formal financial services (IFC, 2020).

The limited access to financial services is exacerbated by the ongoing crisis in the Anglophone region of Cameroon, which has led to a significant decline in economic activities (ICG, 2020). As a result, women entrepreneurs in this region face significant challenges in accessing financial services, markets, and other resources necessary for their businesses to thrive (Njongmeta, 2020). Furthermore, the crisis has also led to a significant increase in poverty and inequality, which has further exacerbated the challenges faced by women entrepreneurs in the region (World Bank, 2020).

Microfinance institutions (MFIs) have been recognized as a vital tool for promoting financial inclusion and entrepreneurship among women in developing countries (CGAP, 2020). However, the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon is not well understood (Tantoh, 2020). Previous studies have shown that MFIs’ services can have a positive impact on women entrepreneurship by providing access to financial services, building financial literacy, and promoting entrepreneurship skills (Kpodar, 2018). However, these studies have been limited to other regions of Cameroon, with limited attention to the Anglophone region (Mbih, 2019).

The lack of access to financial services is not the only challenge faced by women entrepreneurs in the Anglophone region of Cameroon. Women entrepreneurs in this region also face significant challenges in accessing markets, technology, and other resources necessary for their businesses to thrive (Njongmeta, 2020). Furthermore, women entrepreneurs in this region also face significant social and cultural barriers, including limited access to education and training, and limited social and cultural support for women entrepreneurship (Fombo, 2020).

To address these challenges, there is a need for more research on the impact of MFIs’ services on women entrepreneurship in the Anglophone region of Cameroon (Tantoh, 2020). Specifically, there is a need for more research on the impact of MFIs’ services on women entrepreneurs’ access to financial services, markets, technology, and other resources necessary for their businesses to thrive (Makombe et al., 2020). Furthermore, there is also a need for more research on the social and cultural barriers faced by women entrepreneurs in this region, and how these barriers can be addressed through targeted interventions (Fombo, 2020).

In conclusion, the lack of access to financial services, markets, technology, and other resources necessary for their businesses to thrive is a significant barrier to women entrepreneurship in the Anglophone region of Cameroon. To address these challenges, there is a need for more research on the impact of MFIs’ services on women entrepreneurship in this region, as well as targeted interventions to address the social and cultural barriers faced by women entrepreneurs. By providing access to financial services, markets, technology, and other resources necessary for their businesses to thrive, MFIs can play a critical role in promoting women entrepreneurship and economic development in the Anglophone region of Cameroon.

1.3 RESEARCH QUESTIONS

1.3.1 MAIN RESEARCH QUESTION

What is the effect of microfinance institutions services on the performance of women entrepreneurs in English Cameroon?

1.3.2 SPECIFIC RESEARCH QUESTIONS

1. What is the effect of micro saving on the performance of women entrepreneurs in English Cameroon?
2. What is the effect of micro insurance on the performance of women entrepreneurs in English Cameroon?
3. What is the effect of micro credit on the performance of women entrepreneurs in English Cameroon?

1.4 RESEARCH OBJECTIVES

1.4.1 MAIN RESEARCH OBJECTIVE

To examine the effect of microfinance institutions services on the performance of women entrepreneurs in English Cameroon.

1.4.2 SPECIFIC RESEARCH OBJECTIVES 

1. To evaluate the effect of micro saving on the performance of women entrepreneurs in English Cameroon.
2. To evaluate the effect of micro insurance on the performance of women entrepreneurs in English Cameroon.
3. To evaluate the effect of micro credit on the performance of women entrepreneurs in English Cameroon.