Risk Perception and SMEs growth in the Southwest Region of Cameroon

Abstract ―​

The study focuses on the relationship between risk perception and the growth of small and medium-sized enterprises (SMEs) in the Southwest Region of Cameroon. Considering the vital function SMEs play in economic development, it is imperative to comprehend the elements influencing their expansion. Despite the high contribution that SMEs make to the growth of the economy, various challenges they face lead to their market exit even before attaining the third anniversary. Data was gathered from 304 SME owners and managers using a structured questionnaire, offering insights into their viewpoints on risk perception. The research employs a quantitative research approach, utilizing multiple regression and structural equation modelling for statistical analysis to investigate the direct correlations between the variables under investigation. The results show that Risk perception particular overconfidence, anchoring and regret aversion positively and significantly influences the growth of SMEs. The study also offers practical implications for business educators and policymakers in designing targeted interventions to enhance the capacity of SMEs for sustainable growth.