Starting a small business anywhere can feel overwhelming, but starting one in Cameroon?
Well, it’s an adventure all on its own! I know this journey because it feels very familiar.
Imagine you are Peter— a 22-year-old from Douala with a knack for making beautifully embroidered T-shirts.
You’ve been selling a few to family and friends, and now, you want to scale things up, register your business, and maybe open a small boutique.
But where do you begin?
Let’s walk through Peter’s journey of turning an idea into a real business in Cameroon, following every key step to ensure it succeeds.
And who knows—your small business idea might just be the next big thing too!
Why Start a Small Business in Cameroon?
Cameroon’s economy is growing, and the government is actively encouraging entrepreneurship by simplifying some processes and supporting young businesses.
With the rise of startups in fashion, agriculture, transportation, and services, there are many opportunities to build something meaningful.
The best part? You don’t need millions to start.
In fact, some of the most successful businesses here began with just a small idea, a little bit of savings, and a big dream.
Peter knew that if he wanted to succeed, he had to be serious about the steps required to register, organize, and operate his business properly.
Let’s see what he did.
Step 1: Choosing the Right Business Structure
Cameroon offers a few business models, but Peter needed to choose the one that suited him best.
- Sole Proprietorship: Simple and inexpensive to set up. You are the owner, and the business is under your name. However, you’ll be personally responsible for any debts.
- Limited Liability Company (LLC): This structure limits your personal risk. With as little as XAF 100,000 (around $160), you can register an LLC, and your business becomes a separate legal entity.
- Partnerships and Cooperatives: Suitable if working with other people. However, Peter wanted to keep things simple and control his brand, so he chose sole proprietorship for now.
Having chosen his structure, he was ready to move on to registration.
Step 2: Business Name and Registration
A catchy business name is important, but you need to ensure it’s not already taken.
Peter brainstormed a few names like “TeeMagic” and “Embroidery King,” and checked their availability through the One-Stop Business Registration Center.
He found out that “TeeMagic” was free—great!
The One-Stop Shops, located across cities in Cameroon, are designed to simplify registration.
You can also register your business online via the “My Business” portal.
All Peter had to do was gather these documents:
- A valid National ID or passport
- A non-conviction certificate
- A location sketch for his shop
- Proof of a tenancy agreement (since he rented a small space for his store)
With everything in place, Peter registered as a sole proprietor.
In return, he got his Business Registration Certificate, Taxpayer’s Card, and a Business License.
Pro Tip: If your business makes less than XAF 10 million per year, registration is easier, with fewer tax obligations.
Step 3: Securing Funding and Start-up Capital
Starting small doesn’t mean you need to have all the money upfront.
Peter had savings from his side hustle, but he needed extra cash to buy a sewing machine and rent shop space.
Here’s what he did to find funding:
- Microfinance institutions: Many of these institutions in Cameroon offer small loans to entrepreneurs. Peter approached one that specializes in helping small businesses.
- Friends and family: Peter’s uncle lent him some money at no interest, which helped him avoid taking on too much debt.
- Government and private grants: Programs like the Tony Elumelu Foundation provide funding to promising startups. Peter also applied for this grant.
Step 4: Finding a Suitable Location and Setting Up Shop
Location matters a lot.
Peter knew his business needed to be in a busy part of Douala, where students and young professionals hang out.
He found a small shop near a popular university—perfect for selling T-shirts with trendy designs.
He spent some time decorating the shop with colorful walls and displays to attract customers.
Branding matters, and Peter made sure his shop reflected the fun and creative energy of his products.
He also put up a large signboard with his logo so people could easily recognize his store.
Step 5: Marketing and Getting the Word Out
Cameroon is all about community—word of mouth spreads fast, especially when people like your product.
Peter launched his business with a promotion: Buy two T-shirts, get one free.
Here’s how he marketed his products:
- Social media: Platforms like Facebook and WhatsApp are widely used in Cameroon. Peter created a Facebook page and WhatsApp group to showcase his designs and connect with customers.
- Flyers and posters: He printed colorful flyers and distributed them in nearby cafes, markets, and schools.
- Networking with influencers: Peter collaborated with a few local influencers who loved his products and shared them with their followers.
Within weeks, the word spread, and customers began pouring in!
Step 6: Managing Taxes and Legal Compliance
It’s essential to understand the tax structure so you don’t get caught off guard.
Cameroon applies several taxes on businesses, including:
- VAT (19.25%) on most goods and services
- Corporate tax (33%) for registered businesses
- Professional tax, which newly registered businesses are exempt from in the first year
Peter kept things simple by hiring a bookkeeper to help with his accounts and ensure his taxes were filed correctly.
He also opened a business bank account to keep his personal and business finances separate.
Challenges and How Peter Overcame Them
Running a business isn’t always smooth sailing.
Peter faced a few challenges:
- Limited financing: When the microfinance loan wasn’t enough, he cut costs by negotiating rent with his landlord.
- Unstable power supply: Power outages in Cameroon are common. Peter invested in a small generator to avoid downtime in his shop.
- Navigating regulations: Business regulations can be confusing. Peter joined a local business group, which helped him stay updated on policies and requirements.
With persistence and creative solutions, Peter managed to overcome these hurdles and keep his business running.
Key Sectors for Small Businesses in Cameroon
If T-shirt embroidery isn’t your thing, here are some other profitable sectors in Cameroon:
- Agriculture: Growing cocoa, coffee, and bananas for export.
- Transportation services: Offering delivery services or motorbike taxis.
- Healthcare and education: Starting private clinics or tutoring services.
- Artisanal goods: Selling traditional crafts or handmade jewelry. The country’s young population and diverse economy offer plenty of opportunities for entrepreneurs.
