IDEAS home Printed from https://ideas.repec.org/p/exs/wpaper/22-048.html
   My bibliography  Save this paper

Duration of Support and Financial Health of Business Support Structures in Burkina Faso, Cameroon, and Ghana: A Micro-Econometric Analysis

Author

Listed:
  • Jean C. Kouam

    (Yaoundé, Cameroon)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

  • Bin J. Meh

    (Yaoundé, Cameroon)

  • Robert Nantchouang

    (Yaoundé, Cameroon)

  • Fri L. Asanga

    (Yaoundé, Cameroon)

  • Denis Foretia

    (Yaoundé, Cameroon)

Abstract

Access to finance is perceived as one of the major problems facing businesses in Sub-Saharan Africa, as well as the structures that support them in their development. This paper aims to measure the probability that a support structure with given characteristics, specific services to entrepreneurs and some technical capacities will face large-scale financial problems. We estimate a multinomial logistic model using a pool of disaggregated data collected by the Nkafu Policy Institute in a survey of 79 business support structures in Burkina Faso, Cameroon and Ghana in 2021. Our results show that the financial health of a business support structure is not fundamentally dependent on the duration of support, but rather on other factors related to the quality of services offered to entrepreneurs.

Suggested Citation

  • Jean C. Kouam & Simplice A. Asongu & Bin J. Meh & Robert Nantchouang & Fri L. Asanga & Denis Foretia, 2022. "Duration of Support and Financial Health of Business Support Structures in Burkina Faso, Cameroon, and Ghana: A Micro-Econometric Analysis," Working Papers 22/048, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:22/048
    as

    Download full text from publisher

    File URL: http://publications.excas.org/RePEc/exs/exs-wpaper/Duration-of-Support-and-Financial-Health-of-Business-Support-Structures.pdf
    File Function: Revised version, 2022
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simplice A. Asongu & Raufhon Salahodjaev, 2022. "Do female parliamentarians improve environmental quality? Cross-country evidence," Working Papers 22/001, European Xtramile Centre of African Studies (EXCAS).
    2. Frank Martin Belz & Julia Katharina Binder, 2017. "Sustainable Entrepreneurship: A Convergent Process Model," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 1-17, January.
    3. Vanessa S. Tchamyou & Simplice A. Asongu, 2017. "Information Sharing and Financial Sector Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 24-49, January.
    4. MacLeod, W. Bentley & Malcomson, James M., 1993. "Specific investment and wage profiles in labour markets," European Economic Review, Elsevier, vol. 37(2-3), pages 343-354, April.
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Challenges of Doing Business in Africa: A Systematic Review," Journal of African Business, Taylor & Francis Journals, vol. 20(2), pages 259-268, April.
    6. Hockerts, Kai & Wüstenhagen, Rolf, 2010. "Greening Goliaths versus emerging Davids -- Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 25(5), pages 481-492, September.
    7. Emmanuel Delame & Francis Kramarz, 1997. "Entreprises et formation continue," Économie et Prévision, Programme National Persée, vol. 127(1), pages 63-82.
    8. Richard Adu-Gyamfi & John Kuada & Simplice A. Asongu, 2023. "An Integrative Framework for Formal and Informal Entrepreneurship Research in Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 167-187, April.
    9. Yuriy Gorodnichenko & Jan Svejnar & Katherine Terrell, 2010. "Globalization and Innovation in Emerging Markets," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 194-226, April.
    10. Wiji Arulampalam & Alison L. Booth, 1998. "Training and Labour Market Flexibility: Is There a Trade-off?," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 521-536, December.
    11. Ali J. Ahmad & Courtney Thornberry, 2018. "On the structure of business incubators: de-coupling issues and the mis-alignment of managerial incentives," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1190-1212, October.
    12. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    13. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    14. Surana, Kavita & Singh, Anuraag & Sagar, Ambuj D, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    15. Kazeem B. Ajide & Olorunfemi Y. Alimi, 2021. "Income inequality, human capital and terrorism in Africa: Beyond exploratory analytics," International Economics, CEPII research center, issue 165, pages 218-240.
    16. Vanessa S. Tchamyou & Samba Diop & Simplice A. Asongu, 2021. "African Women Vulnerability Index (AWVI): Focus on Rural Women," Working Papers 21/095, European Xtramile Centre of African Studies (EXCAS).
    17. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    18. Seleteng, Monaheng & Bittencourt, Manoel & van Eyden, Reneé, 2013. "Non-linearities in inflation–growth nexus in the SADC region: A panel smooth transition regression approach," Economic Modelling, Elsevier, vol. 30(C), pages 149-156.
    19. Vanessa S. Tchamyou, 2019. "The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality," Journal of African Business, Taylor & Francis Journals, vol. 20(3), pages 317-338, July.
    20. Silvia Ayuso & Francisco Ernesto Navarrete‐Báez, 2018. "How Does Entrepreneurial and International Orientation Influence SMEs' Commitment to Sustainable Development? Empirical Evidence from Spain and Mexico," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(1), pages 80-94, January.
    21. Elena Fleacă & Bogdan Fleacă & Sanda Maiduc, 2018. "Aligning Strategy with Sustainable Development Goals (SDGs): Process Scoping Diagram for Entrepreneurial Higher Education Institutions (HEIs)," Sustainability, MDPI, vol. 10(4), pages 1-17, March.
    22. Karine CHAPELLE & Boileau LOKO & Jean-Michel MARCHAT & Albert ZEUFACK, 1996. "Fiscal incentives and private investment in Côte d'Ivoire: an investigation using RPED Data," Working Papers 199609, CERDI.
    23. Elvis Dze Achuo & Simplice A. Asongu & Vanessa S. Tchamyou, 2022. "Women empowerment and environmental sustainability in Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 22/003, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    24. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
    25. Simplice Asongu, 2013. "How Would Population Growth Affect Investment in the Future? Asymmetric Panel Causality Evidence for Africa," African Development Review, African Development Bank, vol. 25(1), pages 14-29.
    26. Hazwan Haini, 2021. "Examining the impact of ICT, human capital and carbon emissions: Evidence from the ASEAN economies," International Economics, CEPII research center, issue 166, pages 116-125.
    27. Lim, Ee Shiang & Shyamala, Nagaraj, 2007. "Obstacles to innovation : evidence from Malaysian manufacturing firms," MPRA Paper 18077, University Library of Munich, Germany.
    28. Rita Almeida & Ana Margarida Fernandes, 2008. "Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys," Journal of Development Studies, Taylor & Francis Journals, vol. 44(5), pages 701-727.
    29. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    30. David Ashton & Francis Green, 1996. "Education, Training and the Global Economy," Books, Edward Elgar Publishing, number 914.
    31. Maryam Lotfi & Akram Yousefi & Soheil Jafari, 2018. "The Effect of Emerging Green Market on Green Entrepreneurship and Sustainable Development in Knowledge-Based Companies," Sustainability, MDPI, vol. 10(7), pages 1-18, July.
    32. Ayyagari, Meghana & Demirgüç-Kunt, Asli & Maksimovic, Vojislav, 2011. "Firm Innovation in Emerging Markets: The Role of Finance, Governance, and Competition," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 46(6), pages 1545-1580, December.
    33. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    34. Wendy Stubbs, 2017. "Sustainable Entrepreneurship and B Corps," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 331-344, March.
    35. repec:cup:jfinqa:v:46:y:2011:i:06:p:1545-1580_00 is not listed on IDEAS
    36. Daron Acemoglu, 1997. "Training and Innovation in an Imperfect Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 445-464.
    37. Christine Greenhalgh, 2002. "Does an employer training levy work? The incidence of and returns to adult vocational training in France and Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 223-263, September.
    38. Watts, Natasha & Scales, Ivan R., 2020. "Social impact investing, agriculture, and the financialisation of development: Insights from sub-Saharan Africa," World Development, Elsevier, vol. 130(C).
    39. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    40. Ballot, Gerard & Fakhfakh, Fathi & Taymaz, Erol, 2001. "Firms' human capital, R&D and performance: a study on French and Swedish firms," Labour Economics, Elsevier, vol. 8(4), pages 443-462, September.
    41. Kavita Surana & Anuraag Singh & Ambuj D Sagar, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Papers 2005.13138, arXiv.org, revised Jun 2020.
    42. Albert Jolink & Eva Niesten, 2015. "Sustainable Development and Business Models of Entrepreneurs in the Organic Food Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 386-401, September.
    43. Helen Haugh, 2020. "Call the midwife! Business incubators as entrepreneurial enablers in developing economies," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(1-2), pages 156-175, January.
    44. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kouam, Jean & Asongu, Simplice, 2022. "Effects of Taxation on Social Innovation and Implications for Achieving Sustainable Development Goals in Developing Countries: A Literature Review," MPRA Paper 114061, University Library of Munich, Germany.
    2. Matthias Filser & Sascha Kraus & Norat Roig-Tierno & Norbert Kailer & Ulrike Fischer, 2019. "Entrepreneurship as Catalyst for Sustainable Development: Opening the Black Box," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    3. Matthew P. Johnson & Stefan Schaltegger, 2020. "Entrepreneurship for Sustainable Development: A Review and Multilevel Causal Mechanism Framework," Entrepreneurship Theory and Practice, , vol. 44(6), pages 1141-1173, November.
    4. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    5. Sauermann, Jan, 2006. "Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction," IWH Discussion Papers 14/2006, Halle Institute for Economic Research (IWH).
    6. Jung-Seung Yang, 2022. "Dynamics of Firm’s Investment in Education and Training: An Agent-based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1317-1351, December.
    7. Patrick Gregori & Patrick Holzmann, 2022. "Entrepreneurial practices and the constitution of environmental value for sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3302-3317, November.
    8. Caliendo, Marco & Cobb-Clark, Deborah A. & Pfeifer, Harald & Uhlendorff, Arne & Wehner, Caroline, 2024. "Managers’ risk preferences and firm training investments," European Economic Review, Elsevier, vol. 161(C).
    9. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo.
    10. Michael Gerfin & Robert E. Leu & Reto Nyffeler, 2003. "Berufliche Weiterbildung in der Schweiz," Diskussionsschriften dp0318, Universitaet Bern, Departement Volkswirtschaft.
    11. Sebastian Hinderer & Andreas Kuckertz, 2022. "The bioeconomy transformation as an external enabler of sustainable entrepreneurship," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2947-2963, November.
    12. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    13. Jip Leendertse & Frank J. van Rijnsoever & Chris P. Eveleens, 2021. "The sustainable start‐up paradox: Predicting the business and climate performance of start‐ups," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1019-1036, February.
    14. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    15. Matthew P. Johnson & Jacob Hörisch, 2022. "Reinforcing or counterproductive behaviors for sustainable entrepreneurship? The influence of causation and effectuation on sustainability orientation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 908-920, March.
    16. Pablo Muñoz & Boyd Cohen, 2018. "Sustainable Entrepreneurship Research: Taking Stock and looking ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 300-322, March.
    17. Moretti, Luca & Mayerl, Martin & Mühlemann, Samuel & Schlögl, Peter & Wolter, Stefan C., 2017. "So Similar and Yet So Different: A Comparative Analysis of a Firm's Cost and Benefits of Apprenticeship Training in Austria and Switzerland," IZA Discussion Papers 11081, Institute of Labor Economics (IZA).
    18. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance Policy Thresholds for Economic Growth in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 672-689, July.
    19. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Finance, inequality and inclusive education in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 162-177.
    20. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Microfinance institutions and female entrepreneurship in Sub-Saharan Africa: avoidable female unemployment thresholds," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 23/007, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).

    More about this item

    Keywords

    Duration of support; Financial Health of Businesses; Sub-Saharan Africa; Multinomial logit model;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exs:wpaper:22/048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anutechia Asongu Simplice (email available below). General contact details of provider: http://excas.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.