By Chefor Ngwenyi Meungwe (Download PDF)
Introduction
Cameroon, like many other African nations, is grappling with the urgent need to create viable employment opportunities for its rapidly expanding youth population. With over 60% of the population under the age of 25, the economy is under increasing pressure to accommodate a workforce that is growing faster than the available job opportunities (Mbwoge et al., 2024). This challenge has led to persistently high rates of unemployment and underemployment among young people, exacerbating poverty, social instability, and economic vulnerability. Given the critical role youth play in shaping the nation’s future, addressing these barriers is an economic and social imperative.
In recent years, the government of Cameroon has rolled out several initiatives to stimulate youth-led entrepreneurship, such as the establishment of the National Youth Council and the Youth Entrepreneurship Fund, both designed to support young entrepreneurs as a pathway to economic self-sufficiency and innovation (Mbwoge et al., 2024). However, despite these policy efforts, young entrepreneurs in Cameroon continue to face significant challenges. These include limited access to finance, insufficient entrepreneurial education and training, regulatory hurdles, and restricted access to markets—all of which hinder the growth and sustainability of youth-led businesses.
This policy brief provides a comprehensive analysis of the challenges facing youth-led entrepreneurship in Cameroon and offers targeted policy recommendations to address these barriers.
Challenges
Access to Finance: A Major Barrier to Entrepreneurship
One of the main challenges facing young entrepreneurs in Cameroon is access to finance. Many young entrepreneurs struggle to obtain startup capital and financial support due to factors such as limited collateral, lack of trust from financial institutions, and insufficient financial literacy. Most young entrepreneurs lack the necessary collateral required by banks, which limits their ability to secure loans. Additionally, some financial institutions view youth-led businesses as high-risk due to limited financial track records or experience. Financial know-how is also a barrier, as many young entrepreneurs are unfamiliar with the formal financial processes required to access funding, which further complicates the situation. According to a report by the International Finance Corporation, only 10% of young entrepreneurs in Cameroon have access to formal financial services (Ndode 2024). This lack of access to finance is a major barrier to entrepreneurship, as it can limit the growth and profitability of young entrepreneurs’ businesses.
Education and Skills: A Critical Gap
Another challenge facing young entrepreneurs in Cameroon is education and skills. Many young entrepreneurs lack the necessary skills and knowledge to succeed in business, which can lead to poor business management and decision-making (Kede et al 2024). According to a study by the African Development Bank, only 20% of young entrepreneurs in Cameroon have received formal training in entrepreneurship (Ndode 2024). This lack of education and skills is a major concern, as it can limit the potential of young entrepreneurs and hinder the growth of their businesses.
Regulatory Barriers: A Complex and Time-Consuming Process
The process of registering and operating a business in Cameroon is complex and time-consuming. Although One-Stop Shops (Centres de Formalités de Création d’Entreprises – CFCE) have been introduced to facilitate the process, challenges remain. These centers, intended to streamline business registration, have indeed reduced processing time, but administrative bottlenecks and procedural inefficiencies still make the process cumbersome for young entrepreneurs. According to OpenHub Digital, the time required for registration can vary, which indicates that further simplification and more efficient support services are needed (Idi et al 2022). According to a report by the World Bank, it takes an average of 30 days to register a business in Cameroon, compared to 10 days in other African countries like in Rwanda, Uganda and Mauritus (Idi et al 2022). This lengthy registration process can limit the growth and profitability of young entrepreneurs’ businesses, as it can delay their entry into the market.
Market Access: A Challenge to Growth and Profitability
Finally, market access is a challenge facing young entrepreneurs in Cameroon. Many young entrepreneurs struggle to access local and international markets, which can limit the growth and profitability of their businesses (Mouafo 2024). This lack of access to markets can limit the potential of young entrepreneurs and hinder the growth of their businesses. Additionally, the quality of products produced by young entrepreneurs often does not meet international standards, which restricts access to global markets or even when access is granted, the competition is massive, waiving out some of these young entrepreneurs from international and even local markets. Issues with product quality, adherence to international regulations, and standardization must be addressed to enable young entrepreneurs to compete effectively. According to the International Trade Centre, only 10% of young entrepreneurs in Cameroon export their products (Mouafo 2024). This lack of access to markets can limit the potential of young entrepreneurs and hinder the growth of their businesses.
Policy Recommendations
Addressing the Challenge of Access to Finance
To address the challenge of access to finance, the government of Cameroon should establish a youth-focused funding scheme that provides young entrepreneurs with access to startup capital and financial support. This funding scheme could be in the form of grants, loans, or equity investments, and could be targeted at young entrepreneurs who have innovative business ideas and a strong potential for growth.
Improving Education and Skills
To address the challenge of education and skills, the government of Cameroon should continue to expand entrepreneurship education into school curricula and vocational training programs. While such programs are already present at the level of higher education and some high schools, broadening this initiative across more educational levels, including secondary and primary education, would foster entrepreneurial skills from a young age, ultimately equipping future generations with the skills needed for business success. (Ndode 2024). This could include training programs in business management, marketing, and finance, as well as mentorship and guidance from experienced entrepreneurs.
Simplifying Regulatory Procedures
To address the challenge of regulatory barriers, the government of Cameroon should focus on addressing bottlenecks within the existing simplified process. While the registration process has already been streamlined with fewer steps and reduced costs, administrative procedures and inefficiencies still impede swift business registration. Further efforts should target these administrative barriers, potentially through enhanced digital platforms or improved accountability and transparency in administrative processes, to ensure the regulatory environment is more supportive for young entrepreneurs. Improving Market Access
To address the challenge of market access, the government of Cameroon should develop platforms that connect young entrepreneurs with markets and investors (Idi et al 2022). This could include online marketplaces, trade missions, and business incubators, as well as training programs in marketing and export promotion. Also, to improve market access, the government of Cameroon could develop additional platforms connecting young entrepreneurs with markets and investors, including online marketplaces, trade missions, and business incubators. Infrastructure development is equally crucial as improving farm-to-market roads would significantly enhance young farmers’ ability to transport goods to markets, reducing costs and easing logistical challenges. By addressing both digital and physical access to markets, the government can better support the growth and sustainability of youth-led enterprises across various sectors. Conclusion
In conclusion, youth-led entrepreneurship has the potential to drive economic growth in Cameroon. However, many young entrepreneurs in Cameroon face significant challenges in starting and growing their businesses, including access to finance, education and skills, regulatory barriers, and market access. To address these challenges, the government of Cameroon should establish a youth-focused funding scheme, integrate entrepreneurship education into school curricula and vocational training programs, simplify regulatory procedures, and develop platforms that connect young entrepreneurs with markets and investors. By implementing these policies, the government of Cameroon can create a supportive environment for youth-led entrepreneurship and help to unlock the potential of young Cameroonians.
