Risk of entrepreneurial discontinuity and dissatisfaction in the informal sector in Cameroon

Abstract

This research note aims to examine the interactions between entrepreneurial discontinuity and entrepreneurial dissatisfaction among promoters of informal non-farm production units in Cameroon. The analysis is based on a sample of 4432 promoters of informal production units (IPU), taken from phase 2 of the second survey on employment and the informal sector in Cameroon (INS, 2010). Drawing on the literature review, the econometric results, obtained using a recursive bivariate probit model, reveal a positive and significant interaction between entrepreneurial failure and entrepreneurial dissatisfaction. In addition, economic failure, professional experience, lack of opportunities, strong regulation and taxation of economic activities and difficulties in accessing bank credit significantly influence the risk of disappearance of IPUs. Moreover, IPU promoters facing difficulties (i) in managing their activities, (ii) in accessing bank credit and (iii) in selling their products due to a lack of customers are likely to suffer from entrepreneurial dissatisfaction.