The paradox of policy and performance: The case of small and medium-size enterprises and promotional agencies in Douala, Cameroon

The promotion of SMEs (small and medium-size enterprises) has recently become “the order of the day” not only within the private sector, but also among government bodies and development institutions alike, since there is a widespread belief that SMEs contribute significantly to economic growth and development. This suggests that promoting SMEs can serve as a tool to achieve a self-sustaining economy which could go a long way to solve socioeconomic problems like unemployment and poverty. Nonetheless, pro-SME advocates argue that SMEs’ failure is partly due to their inability to access finance due to lack of collateral security and poor financial records. This paper presents, examines, and analyzes findings of the relationship between the performance of SMEs' Promotional Agencies (PAs) in relation to their programmes guided by policy norms against what SMEs say they need in the case of SMEs and PAs in Douala, Cameroon. In doing so, this paper uses quantitative and qualitative methods of analysis and the concept of Good Governance (GG) to further explore this relationship. Analysis of the findings suggests that institutional allegiance to hierarchy and elite capture undermine GG and can adversely affect the overall performance of PAs and can result in a total mismatch between what PAs provide and what SMEs say they need, which can be called "The SME - Agency Paradox."