DANGERS AND OPPORTUNITIES OF STARTUP ACTIVITIES IN RURAL AREAS OF CAMEROON

Abstract

The adage “too much of a good thing can turn sour” aptly applies to the geographic distribution of business ventures, where an excessive concentration in urban areas can lead to adverse outcomes. Empirical evidence shows a pronounced preference for urban centers over rural areas among startups and small businesses. According to Fed Small Business (2024), only 15% of small businesses in the United States are located in rural communities, with 85% concentrated in urban centers—a trend mirrored globally. This study investigates the factors driving the concentration of businesses in urban areas in Cameroon, examines the underutilization of rural spaces, and assesses the economic consequences of this imbalance.

Addressing this uneven distribution is vital for achieving balanced regional development, fostering inclusive economic growth, and advancing scientific development in Cameroon. The primary objective of this research is to analyze the determinants of business location choices and propose strategies for more equitable distribution of enterprises, thereby reducing unemployment and its associated negative impacts. The study will employ a mixed-methods approach, including a comprehensive literature review and analysis of industrial location data. The findings will inform strategies that make rural areas more attractive for business investment, promoting balanced and sustainable development across the country.