The role of micro finance institutions in the development of small and medium size enterprises (SMEs) IN Cameroon : Agyati Cooperative Credit Union Limited (AgyaCCUL)

Abstract

This study explains the role of microfinance institutions in the growth and development of small and medium size enterprises in Cameroon, it examines the profiles of small and medium size enterprises in Cameroon. The role played and challenges faced by microfinance institutions in granting loans and the challenges faced by individuals and business people in obtaining credits is analyzed. This research work also shows the economic role played by small and medium size business that is creating employment opportunities and provision of goods and services to customers especially in rural areas. Some of the challenges faced by investors in accessing credit is about having a good collateral security for a loan such as land.

This research was analyzed based on the questionnaires which were issued to 50 respondents in some three regions in Cameroon. Some recommendations were made, firstly the commissioner should moderate the charges involved in the loan granting process and issuing of the loan. The commissioner should also moderate the security measures put in place to back up the loan to encourage more business people. Most small and medium size business people are unable to use bank finance because of the unreasonable level of security that is required by the microfinance institutions.