Impact of Micro Credit on the Growth of Women-Owned Small Businesses in Limbe I, Cameroon

Abstract

Purpose -- This study aims to analyze the impact of microcredit on the growth of women-owned small businesses in Limbe I Cameroon. More specifically, to identify, map and characterize the women-owned small businesses in Limbe I that have benefited from micro-credit, to assess the extent to which microcredit has assisted in the expansion of their businesses, and to investigate the challenges faced by the women small businesses in Limbe I.

Design /Methodology/Approach – The research design adopted for this study was ex-post facto or causal-comparative research design. A sample of 30 women-owned small businesses that have ever benefitted from microcredit was selected using a purposive sampling technique. The instrument used for this study was a well-structured and validated questionnaire and data for the study was analyzed and presented on tables, bar charts, using descriptive and inferential statistics assisted by SPSS software version 20 and the hypothesis was tested using a regression.

Findings – The findings revealed that microcredit has a very low level of impact on the growth of women-owned small businesses in Limbe I. The findings also unveiled the major challenges faced by women entrepreneurs viz. the pledge for collateral security, the lack of marketing skills and knowledge, the absence of proper training and support, the cumbersomeness of documents for the acquisition of loans, the high-interest rate, the long period of time taken before granting their loans and an absence of knowledge and awareness amongst women about budgeting control resource management and commercial functions.

Practical Implications- The study recommends that the women-owned businesses of Limbe I should unite them by creating an association on which to debate about their challenges. The Delegation of the small and medium scale enterprise should organize training to enhance their business management skills.