Enterprises Should Get More Interested

Accueil / L’enquête de la semaine / Chiffres clé de la semaine / Enterprises Should Get More Interested

Enterprises Should Get More Interested

17 avril 2024 05:52

Capital is one of the factors of production and in any business venture, the availability of starting capital is crucial to move from a mere idea or concept to reality. Having access to funding is therefore one of the biggest challenges for business development not only in Cameroon but also in Africa and world over. Today, many financial windows exist with varying conditions of accessibility. In the CEMAC sub-region, enterprises still depend more on funding offered by commercial banks through long term loans. This is the most common form of business financing in this part of the world especially for small and medium-sized enterprises. Here, the nascent financial market in the Central African sub-region is still to be fully exploited as enterprises still shy away from putting up their shares. Financial Pundits are unanimous on the important role financial markets play in facilitating the growth of companies and by extension, the entire economy. In the Central African sub-region, the Stock Exchange BVMAC exist with just a handful of companies subscribed to it for the sale of their shares to raise financial resources. Equity shares could as well be the springboard of many struggling enterprises in the area to blossom but most of the companies are shying away from the stock market. This is understandably so because the financial market imposes its conditions that must be fulfilled. One of such is transparency because the companies listed on the stock markets are expected to publish their annual financial records for public scrutiny. This seem to be a herculean task for local enterprises in the sub-region which are most often avoiding to publish their financial reports in a bid to avoid paying taxes. The companies are thus shooting themselves on the leg because it makes it impossible for them to enter the financial market in case th...