Relationship Between Growth Strategies and SME Success / Failure: The case of SMEs in the Western Region of Cameroon

Abstract

Just like most economies around the globe, SMEs are of extreme importance to the Cameroonian economy. They constitute the greatest part of the business population and contribute significantly to GDP, job creation, as well as income distribution, and the fight against poverty. Despite their contribution, this category of business still experiences high failure rates. The lack of a strategic approach in the management of SMEs alongside other factors has been reported to be responsible for these high failure rates. However, the inhabitants of the Western Region of Cameroon have proven to be highly successful in their business ventures. While their business success is extensively reported, studies that provide empirical evidence of the association between the growth strategies they used and SME success are almost inexistent; thus, the purpose of this study. The study made use of a pre-tested questionnaire that was administered to 500 SME owners/managers in the Western Region of Cameroon. After consistency checks, 403 returned questionnaires were retained for the study. Findings from this study revealed that there exists a significant association between the use of growth strategy and SME success/failure in the Western Region of Cameroon. It is therefore recommended that SMEs in this region make more consistent and deliberate use of strategy to improve business success chances.