According to GICAM, the Commerce sector in Cameroon in 2016 represents 107,509 businesses and commercial establishments, i.e. 51% of businesses in Cameroon. It should be noted that 55% of these business establishments are located in Douala and Yaoundé. This sector is the area of choice for entrepreneurs, as shows the increase in the number of businesses registered between 2009 and 2016 doubling from 51,981 to 107,509.
Commercial companies are structured as follows, 9% of companies are wholesaling against 91% who are retailing. Wholesaling is dominated by the trade of automotive accessories and spare parts, whereas the retail sector is dominated by the trade of food, drinks and tobacco, followed by the retail of textiles, clothing, footwear and leather accessories.
All this information seems harmless until we realize that these 107,509 companies and establishments, or 51% of companies in Cameroon, only constitute only 15% of the national GDP on average over the last 10 years, and a mere 36% of jobs created by companies in Cameroon in 2016. The Commerce sector therefore shows a serious productivity deficit compared to other branches of the economy according to the GICAM analysis.
In fact the trade sector is essentially made up of small, very small and micro enterprises. The trade sector is the epitome of the informal economy. The capacity for innovation seems particularly limited and is characterized above all by copy-cat strategies. Many entrepreneurs throw themselves into projects out of the blue or thanks to their "flair" in business with mixed results.
A market study allows you to systematically assess the relevance of the business you want to launch in the Cameroonian environment, known to be rather complex. What innovation are you going to bring compared to the competition? Do you have the potential to gain market share over the long term? A business plan will contain the marketing and sales strategy as well as the financial forecasts that measure the viability of the investment in the short and medium term.
In short, trade companies are an easy choice to start a business, but Cameroonian entrepreneurs struggle to stand out and achieve ambitious financial objectives, which require serious preparation (market study) and analysis (business plan).