Effet de l’inclusion financière sur la formalisation des Petites et Moyennes Entreprises au Cameroun

Abstract

There is empirical evidence of the effect of financial inclusion on the growth of Small and Medium-Sized Enterprises. However, little is known about its effect on the formalization of informal firms. This paper therefore aims to analyze the role of financial inclusion in the formalization process of SMEs in Cameroon. Using data from the Enterprise Survey 2016, we construct a financial inclusion index to assess the effect of overall access to inclusive financial services on the one hand. On the other hand, using a discrete choice model, we analyze the specific effect of each financial service. The result is that financial inclusion is associated with increased formalization of firms. Specifically, simultaneous access to several inclusive financial services increases the probability of formalization of firms by 5.3%. Furthermore, access to specific financial instruments such as credit and savings accounts increases the probability of registration for informally operating SMEs. Finally, the use of Mobile Money reduces this probability by 17.9%. These results underline the need to promote the development of certain inclusive financial services (such as access to credit, bank account creation) and to better organize the use of mobile financial services.