Formal, informal and semi-formal sources of finance: Is there any difference amongst Cameroonian small enterprises and medium enterprises?

Abstract

Studies on the small and medium sized enterprises (SMEs) financing do not generally distinguish them. This study aims to compare the small enterprises (SEs) financing to those of medium enterprises (MEs). The questionnaire survey of 41 SEs and 47 MEs selected and the comparison statistical test, points the fact that bank loan and informal funding sources, effectively allow significant distinction amongst SEs and MEs in Cameroon. While the formal and semi formal intermediate funding (overdraft, trade credit, and microcredit) does not allow differentiating them. Consequently SEs financing sources are more informal than MEs financing sources. Thus, the effectiveness of economic policy for SMEs is subject to a distinction between them. Keys words: Small enterprises, Medium enterprises, Formal