EVALUATION OF ENTREPRENEURSHIP AS A VERITABLE TOOL FOR UNEMPLOYMENT REDUCTION IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The notion of entrepreneurship involves various perspectives from academic disciplines such as business administration, sociology, economics, and management (Stevenson, 2019). Economists view entrepreneurship as the amalgamation of resources, labor, materials, and other assets to create value greater than the sum of its parts. From a management standpoint, entrepreneurship involves introducing change, innovation, or a new order. To business administrators, entrepreneurs are individuals driven by specific goals, experimentation, achievement, or perhaps the desire to escape hierarchical authority.  Furthermore, Akpoveta and Agbomah (2019) associate the rising youth unemployment, particularly among graduates in Cameroon, with deficiencies in the nation's educational system, which prioritizes academic qualifications over practical skills. This results in the production of graduates ill-suited for the job market. Damuchi (2018) highlights the mismatch between manpower and labor market demands, noting that Cameroon's educational system fails to equip workers with the technical, cognitive, and attitudinal skills required for employment. In order to address this issue and mitigate the consequences of youth unemployment, the Cameroonian government introduced the Small Scale Industry and Graduate Employment Scheme in 1986. However, Aberu (2021) adds that skill acquisition workshops and seminars are organized for unemployed graduates to impart the technical know-how of starting and managing small-scale businesses, such as industrial starch and cassava flour production, soap and detergent manufacturing, mobile phone repair, maintenance, and marketing. 

Additionally, the African Development Bank (ADB) provides loans to beneficiaries to start their chosen projects, enabling them to become self-employed and achieve self-actualization. While Abari et al. (2016) suggests that effective entrepreneurship education can produce entrepreneurs capable of driving technological, economic, industrial, socio-political transformation, and fostering innovation across various business sectors in Cameroon. Also, Okonji (2019) contributes that entrepreneurship leads to economic development, improved living standards through innovation, reduced rural-urban migration, local technological advancement, and conservation of foreign exchange. 

Nevertheless, Otobu (2019) observes that various programs initiated by both military and civilian administrations in Cameroon aimed at promoting functional entrepreneurship, skill acquisition, job creation, poverty eradication, wealth creation, food security, unemployment reduction, youth empowerment, and crime reduction in society. Therefore, a survey will be conducted in order to evaluate on entrepreneurship as a veritable tool for unemployment reduction in Cameroon.

1.2 Statement of the Problem

In the last years unemployment has been a high priority for European employment policies (Agenda for International Development, 2019). However, Cameroon's macro-economic landscape presents challenges for robust entrepreneurship development. These obstacles include hesitance among individuals to engage in entrepreneurial ventures due to fear of failure, cumbersome business registration processes, a complex taxation system, limited access to startup capital, insufficient financial support, inadequate infrastructure, and government diversification of funds(Deakins and Freel, 2019). Furthermore, the reduction in training duration for participants adds to the barriers. Additionally, an unstable political climate deters potential investors interested in entrepreneurial endeavors. Government initiatives in Cameroon are insufficiently tailored to foster entrepreneurship. The country lags in infrastructural development, significantly hampering productivity and entrepreneurial endeavors. Thus, it is in the light of these that the study seeks to evaluate entrepreneurship as a veritable tool for unemployment reduction in Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to survey on entrepreneurship as a veritable tool for unemployment reduction in Cameroon. Specifically, the study will;

Investigate the causes of unemployment in Cameroon.

Determine whether there is a relationship between entrepreneurship and unemployment in Cameroon

Assess the contribution of entrepreneurship on employment generation in Cameroon

Investigate the problems affecting the effectiveness of entrepreneurship towards the reduction of unemployment in Cameroon.

 1.4 Research Questions

The following questions have been prepared for the study:

What are the primary causes of unemployment in Cameroon?

Is there a discernible relationship between entrepreneurship and unemployment levels in Cameroon?

How does entrepreneurship contribute to employment generation in Cameroon?

What are the key challenges hindering the effectiveness of entrepreneurship in reducing unemployment in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant relationship between entrepreneurship and unemployment reduction in Cameroon

Ha: There is a significant relationship between entrepreneurship and unemployment in reduction Cameroon.

1.6 Significance of the Study

This research is significant as it will inform government and policymakers on implementing supportive policies, providing resources, and designing programs to encourage entrepreneurship among the populace. Furthermore, it offers valuable perspectives for employment agencies and NGOs in Cameroon, assisting them to design programs and interventions aimed at fostering entrepreneurship as a means to reduce unemployment. This may involve offering training, mentorship, access to finance, and other support services to aspiring entrepreneurs. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to evaluation on entrepreneurship as a veritable tool for unemployment reduction in Cameroon.

1.6 Scope of the study

The scope of this study is to evaluate entrepreneurship as a veritable tool for unemployment reduction in Cameroon. Empirically, this study will investigate the causes of unemployment in Cameroon, determine whether there is a relationship between entrepreneurship and unemployment in Cameroon, assess the contribution of entrepreneurship on employment generation in Cameroon and investigate the problems affecting the effectiveness of entrepreneurship towards the reduction of unemployment in Cameroon.

Geographically, the study will be delimited to residents of Douala, Cameroon

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.8 Definition of Terms

Entrepreneurship: refers to the process of identifying, creating, and pursuing opportunities to generate value through innovative ideas, products, or services.

Unemployment: the state of being without a job, typically as a result of actively seeking employment but being unable to find suitable work.