Financial innovation, financial inclusion, and enterprise performance: A sectoral analysis

Abstract

This study analyzed the effects of the use of financial services (financial innovation and financial inclusion) on the enterprises’ performance in Cameroon. Ordinary least squares and logit model estimation methods were used for the empirical analyses. The data used are those of the World Bank's Enterprise Survey 2016 data. The results reveal, on the one hand, positive effects of all financial services on the productivity of the enterprise’s workforce and on their probability of exporting, with the respective exception of the unique use of microfinance and mobile money. On the other hand, the contribution of banking services to the improvement of manufacturing turnover, and in particular of banking, microfinance, and mobile money services to the improvement of trade and services turnover, is noted. Thus, it is necessary to liberalize the financial sector for the benefit of network operators so that they can also operate internationally and in terms of microfinance institutions for the improvement of enterprise performance in Cameroon like their peers in Ghana and Kenya.