Impact of Financial Planning Strategies on Business Growth among Women Entrepreneurs in Small Businesses in Cameroon

Abstract

Effective financial planning enables businesses to navigate risks, seize opportunities, and achieve long-term success. But in developing economies, women-led businesses face unique obstacles, such as limited access to finance, inadequate financial literacy, and socio-cultural barriers. This study investigated the impact of financial planning strategies on business growth among women entrepreneurs in small businesses in Cameroon. The objective was to identify the factors that influence business growth. A survey of 30 women entrepreneurs was conducted, and robust linear regression analysis was employed to analyse the data. The ordinary least squares (OLS) method was used to estimate the model parameters, and the reliability test was conducted to ensure the consistency and reliability of the data collection instrument. The study found that the scale reliability coefficient is 0.6006, indicating moderate reliability of the measurement scale. The findings revealed that a one-unit increase in budgeting practices leads to a 0.408 increase in business growth, indicating that effective budgeting is crucial for business success. Similarly, a one-unit increase in investment strategy results in a 0.407 increase in business growth, highlighting the importance of sound investment decisions. The study concluded that financial planning strategies are better aligned with regression p-values, indicating business growth among women entrepreneurs in Cameroon. Policymakers are recommended to provide training and support programmes to enhance the financial planning skills of women entrepreneurs and to develop tailored financial products that meet the needs of women-owned businesses. Effective budgeting practices and investment strategies are crucial for women entrepreneurs to achieve their business objectives and contribute to the country's economic development.