Cameroonian Companies Witness High Activity Cessation Rate – Survey

APAnews  | The results of a survey in Cameroon published Monday by the National Institute of Statistics (INS) suggest an overall rate of 36 percent cessation of operations among companies set up in the country between 2009 and 2016.

Thus, out of 6,458 targeted companies, 2,316 have closed down, almost all (about 95 percent) having ceased operations before 2014.

The fundamental determinants of this phenomenon are, in order of importance, the size of the company, the degrees held by the manager (or the main promoter) and the legal form of the company, INS explains.

According to the survey, the size of the company seems to be the most influential variable in the mortality of the businesses, the risk of disappearance being around 20 percent for the medium-size enterprise, 31 percent for a small enterprise and 39 percent for a very small company.

The results obtained by INS also show that, with respect to a company whose manager holds a Masters degree or a diploma of advanced studies, those headed by a promoter with a Higher Technician’s Certificate (BTS) or a BA, have a 7 percent additional risk of ceasing operations.

The additional risk is 12 percent for those whose leader stop at the level of a baccalaureate.

Regarding the legal form of the company, the same study shows that in relation to a limited liability company (SARL), a sole proprietorship (EI) has a 9-percent probability of ceasing operations.

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