Modelling Determinants of the Creation and Growth of a Small Retail Business: Case of Provision Stores in the Yaounde I Neighbourhood of Cameroon

Although micro or very small retail businesses are today recognised as playing a key role in the economies of developing countries, marketing literature has given only minimal attention to them, and has generally concentrated on the contribution of Small and Medium-sized Enterprises (SMEs) to economic development. In the retail sector, attention is rather progressively turning to medium and large shopping malls. This study seeks to understand the determinants of the creation and growth of small retail stores in Cameroon. A total of twelve (12) participants were purposively sampled in six (6) out of fifteen (15) administrative quarters in the Yaoundé I neighbourhood, and data were obtained through in-depth interviews to generate rich and detailed insights into the experiences and perspectives of small retail store owners in the community. At the attainment of theoretical saturation, data were analysed based on the grounded theory approach, using open, axial and selective coding techniques. The study reveals that financial resources and stringent financial management are the underlying determinants of the successful creation and growth of small retail stores. However, other critical factors including retailer characteristics, strategic business location, market intelligence and relations with customers combine with the core factor, and act in synergy to facilitate the creation and growth of small provision stores. Mobilisation of initial finances and judicious management of profits generated by owners, alongside policy interventions targeting access to start-up and expansion capital, as well as capacity building for small retail business owners, would facilitate and incentivise entry into the formal small scale retail sector and thereby, stimulate economic growth in the country.