Does culture empower inclusive finance? Empirical investigation into small business in Cameroon

Abstract

The issue of culture is becoming ever more interesting, especially when interconnected with other business factors like finance. Although intriguing, the relationship between culture and finance has long been neglected. Unlike existing research, this article aims at assessing the impact of culture on financial inclusion and financial literacy among Cameroonian small business managers. In this quantitative investigation, the indices are built using Principal Component Analysis (PCA), and the estimation is done using Ordinary Least Squares (OLS). The data used is from a research survey on 161 small enterprises in the cities of Douala, Bafoussam, Foumban, Foumbot, and Dschang. The findings demonstrate that organizational culture, in contrast to its social component, is positively and strongly associated with financial literacy and financial inclusion. Additionally, firm and manager variables like age, turnover variation, and education level significantly explain these financial variables. Thus, it is essential to promote organizational culture in Cameroonian businesses.

1. Introduction

One of the best ways to fight against poverty and inequality involves finance, especially accessibility to financial services [1,2]. Financial development, through easy access to financial services, helps accelerate economic growth and reduce poverty [3]. Financial inclusion is crucial because, on the one hand, it is one of the most debated issues in projects aiming at enhancing living conditions, lowering vulnerability, and fostering social and economic empowerment. Conversely, seven out of the seventeen Sustainable Development Goals (SDGs), emphasize minimizing financial exclusion. According to Ref. [4], businesses and low-income populations contribute significantly to the enhancement of financial inclusion and the development of the economy.

Since it stimulates savings, the accumulation of capital, and ensures the best possible allocation of capital, access to financial services is thus a significant problem for all economic actors. According to the [5], all individuals and organizations need to have access to a range of financial goods and services that let them meet their financial needs in a way that is reasonable, useful, ethical, and long-lasting. Hence, an inclusive financial system promotes an appropriate savings culture and a variety of important banking services, which enhance efficiency and welfare [6]. Additionally, it lessens how frequently people take informal loans. In this regard, a dynamic financial system encourages the efficient use of resources, which lowers the cost of capital. An appropriate level of financial literacy is required to achieve this.

According to Ref. [7], both states and businesses need to emphasize financial literacy. Financial education, which is linked to financial literacy, is crucial for choosing the appropriate financial products [8]. The latter has significant ramifications for the management of personal finance and is strongly related to the way each country's financial systems evolved [9,10]. These authors assert that it is essential to the economy's growth since it makes it simpler to promote economic security by reducing unemployment. Financial literacy refers to a minimum level of knowledge, skills, and self-confidence needed to manage personal finance [11].1 Indeed, the growing complexity of financial products creates the need for a good level of financial literacy. Hence the need to be financially included. Financial inclusion and financial literacy can therefore be considered two important approaches to inclusive finance. As the concept implies, inclusive finance refers to a group of actions and practices that attempt to improve the inclusion of all in issues related to financial management personally or as a whole. According to Ref. [12], the goal of inclusive finance is to prevent financial exclusion, which is defined as “the incapacity, difficulties, or unwillingness of particular groups to have access to or utilize standard banking services that are essentially fitted to their requirements, and enable them to maintain a normal life within the community to which they belong to” [13].

Despite its significance, financial inclusion is still far from achieving a level that would lead to an insignificant level of financial exclusion. In fact, according to the [14], 40% of adults worldwide lack access to a bank account [15]. Similar to this, in the United States, over 30% of the total low-income population is financially excluded [16]. Financial inclusion has not significantly improved globally over time [6], particularly in developing and undeveloped countries in Sub-Saharan. The World Bank [17] estimates that approximately 65% of adults in the world's poorest economies lack access to a bank account for daily transactions, which would allow them to send and receiving more secure and efficient payments. Nevertheless, consumers must describe the complete range of financial services and products they desire. One of the arguments to support the difficulties of improving access to financial services is the culture. Indeed, business culture has a significant impact on the visions, guiding principles, and eventually, the decisions made by the company [18]. Therefore, the purpose of this paper is to emphasize how culture affects both financial inclusion and literacy in small businesses.

The concept of culture is exceedingly ambiguous and multifaceted. Hofstede [19] defined it as “the passing on from; one generation to the next, through instructions and mimicry, of information, of values, and additional factors that affect attitude.” [[20], [21], [22]]. The cultural approach of [23,24] is regarded as the center of culture and the cultural diversity that exists in business [25,26]. The traits that guide an organization's operation and give it its unique identity are referred to as its corporate or organizational culture [27]. Insofar as cultural and religious issues have a substantial influence on economic development, corporate culture, long regarded as a vague concept since it cannot be measured, is now of growing interest [28].

There hasn't been much research on how culture and finances interact within companies. The literature has long neglected the impact of culture on financial problems [29]. Stulz and Williamson [22] assert that taking cultural factors into account is fundamental while investigating financial problems. Despite being relatively new, considering cultural variables in financial research is spreading and receiving greater attention [30]. Karolyi [31] stresses that, in comparison to other economics fields, research in finance focusing on the effect of culture on decision-making is comparatively little. Regarding the relationship between finance and culture in organizations, the existing literature links this last to corporate debt, dividend policy, mergers and acquisitions, financial development, and firm value [[32], [33], [34], [35], [36], [37], [38], [39], [40], [41]], but not in relation with inclusive finance.

Given the importance of inclusive finance as mentioned earlier, this study, in contrast to previous ones [41,42], is focused on financial literacy as well as access to financial services. The little research connecting culture and financial inclusion [6,43], is done at a macroeconomic level, whereas we are interested in a microeconomic business strategy in this article. In other words, this research considers corporations like individuals, building on earlier macro-level studies. These authors argue that, to achieve sustainable development goals, stakeholders and policymakers must comprehend and acknowledge the culture of a given country before pursuing financial inclusion goals. Additionally, most research on financial literacy simply considers financial knowledge, ignoring two additional dimensions, namely financial competence and self-confidence. In addition to these major contributions, the small company context is extremely important for several reasons. Small businesses make a significant contribution to the growth of the world economy. By providing goods and services, they stimulate consumer spending and drive demand. They are also significant drivers of job creation and employment opportunities, they foster entrepreneurship and innovation, driving economic growth. Considering the above, it is recommended managers of small companies to focus on supporting a culture that develops employees. It is the employees who create and build values, bring new, innovative ideas, and with their abilities and skills influence the performance, competitive advantage, economic development, and success of the entire enterprise as well as development of small enterprises [44]. Cameroon is, on the one hand, distinguished by its cultural diversity. There are more than 200 different ethnic groups in Cameroon, with almost the same number of national or local spoken languages. On the other hand, it is a bilingual country with two specific legal systems. In addition, Cameroon's ecosystem is largely dependent on small and medium-sized businesses. The National Institute of Statistics [45] estimates that these businesses make up about 90% of Cameroon's economic system. An additional contribution of this article includes the construction of indexes for the main variables and a global index for financial literacy, which has not yet been done in the literature.

This article is of threefold interest from a managerial perspective. First, it enables managers to determine the level of cultural appropriation in Cameroonian businesses. Second, it allows for evaluating their level of financial literacy and inclusion. Third, this research can help them to determine whether culture is important in determining their inclusive financial level, permitting them to take the necessary measures to strengthen it. To increase access to financial services, this study can help them to adopt best cultural practices in their management decisions.

The link between culture and finance is therefore central for society, regulators, and policymakers due to its potential influence on various aspects of the economy and social well-being. Indeed, the interaction between culture and finance, particularly in the realm of inclusive finance, holds significant implications for economic stability (culture can impact financial behaviors, savings, and consumption), financial inclusion (an understanding of cultural diversity in financial practices can lead to more inclusive policies by designing financial systems that respect cultural values, thereby promoting broader and equitable participation in the economy), risk management (an in-depth analysis of culture can help identify culturally specific risk factors in the financial domain), and, sustainable development, and innovation (culture can serve as a source of inspiration for financial innovation, and by endorsing approaches that integrate cultural elements, regulators can foster creativity in the financial sector). From the same perspective, one can also highlight effects such as inclusion and the reinforcement of economic identity (by considering cultural values and practices) and the adaptation of regulations (regulators can tailor financial policies, taking into account cultural diversities, thus promoting more effective and culturally sensitive regulation of local contexts).

The remainder of this article is structured into four additional sections. Section 2 highlights the literature review on the relationship between finance and culture. Section 3 presents the methodology. Section 4 highlights the results and discussion, and Section 5 concludes the article.

2. Literature review

This includes theoretical justification of the connection between culture and finance and a summary of empirical literature.

2.1. Theoretical justification of the culture and finance linkage

Three theories, namely neo-institutional theory, trust emancipation theory, and access opportunity boundary theory, have been invoked based on the literature [6,46] to shed additional light on the link between corporate culture and inclusive finance.

2.1.1. The neo-institutional theory as the foundation of the relationship between culture and finance

The neo-institutional theory has been more popular recently within the broad range of organizational theories, claim [47]. This theory, which begins with [48], is based on [49,50], which is referred to as “old institutionalism,” and [51], which is referred to as new institutionalism. According to Refs. [[52], [53], [54]], the core of the neo-institutional theory is to use culture and cognition to explain how organizations behave in their environment and reject the classical economics' concepts of rational agents. By considering the characteristics of the supra-individual items of investigation, which cannot be minimized to collections or direct results of the personality traits or motives of the individuals in question, these authors provide justifications for the cognitive and cultural relationships between social as well as organizational events. According to Ref. [53], for organizations to have the best survival chance, they must adhere to the existing various cultural norms and ideas. As a result, the neo-institutional theory is a theory of the environment of organizations, since its originality resides in the contrast between two perceptions of the environment of organizations and the forces they transmit and bear on organizations [55]. Therefore, the individual's behavior affects the institution's development, administration, or instability.

To dissuade or take advantage of cultural influences, formal institutions are designed. Therefore, it is reasonable to assume that the presence of formal institutional frameworks will restrict the influence of culture on the economy. Additionally, culture is the first institutional layer that influences financial development [56]. According to Ref. [20], the ability of the financial market to allocate resources toward worthwhile projects and the quality of institutions have the potential to have an impact on financial inclusion. While stronger institutions can boost access to financing by lowering the effects of costs associated with information and transactions, the opposite is also true. In this case, culture is emerging as one of the key forces promoting economic expansion. In conformity with this theory, institutional settings, or more specifically the culture practiced there, play a significant role in improving the understanding of inclusive finance. Stulz and Williamson [22] emphasize the importance of the institution as a channel through which finance can be influenced by culture in addition to values and resource allocation.

2.1.2. Theory of trust emancipation, culture and finance

The trust emancipation theory was developed by Refs. [57,58]. In a society where there is some degree of environmental uncertainty, it encourages the emergence and intensification of long-term connections between the various stakeholders. In the context of this theory, there may be a friendly (familiarity) or hostile (conflictual) connection between these actors. People who have a certain amount of trust build relationships that are more reliable and enduring than those who have a low level of trust. According to the aforementioned theory, creating a trusting connection is regarded as a normative expectation within a society. It motivates people to create new, solid friendships and deepen existing social ties [58]. These planned connections, created to facilitate actor interaction, are generally consistent with [19] notion of culture. People with different cultural backgrounds and ethnic origins are typically less inclined to cooperate and form honest connections because of a lack of trust [6]. This theory explains, for example, the divergence in access to financial services when distinguishing between Islamic finance and traditional finance (in the sense of capitalism). As a result of the faith in his culture, it will be simpler for a devout Muslim to pay more attention to the financial products of Islamic finance.

2.1.3. The theory of access possibility frontiers

Theoretical research on financial exclusion focuses on the obstacles that prohibit groups and people from accessing the financial system. In this regard [46], develop the theory of access possibility frontiers. It uses the economic supply-demand principle to identify barriers to financial services accessibility and their main cause. The contemporary idea of access possibilities emphasizes the importance of access to diverse financial services by businesses, which is one of the study's aspects. Financial illiteracy and cultural factors like religion, in addition to economic (income and pricing) and non-economic (financial services demand) factors, influence the demand for financial services.

The supply of financial services is explained by transaction costs and systemic risks [46]. In a market with unfettered competition, institutions or regulatory agencies determine the prices for financial transactions, and market participants no longer gain from economy of scale and scope. This serves as a significant roadblock to the democratization of access to affordable financial services for consumers and businesses since it artificially keeps costs rising. For small business owners, who usually stay away from the formal sector because of the perceived high costs, the issue is much more concerning. Systemic risk is specific to a market, a community, a region, or a nation. It imposes itself as a management-required limitation for agents. The size of the market, the level of technology access, the level of per capita income, the caliber of the infrastructure for transportation and communication, and the legal and security framework for the safety of everyone seeking financial services are among the risks that have been identified. These characteristics may be part of the market's cultural makeup, but they are important for the institution and its members. Cultural and religious obstacles have a striking impact on the demand for payment services in Cameroon, in contrast to very significant economic issues like financial illiteracy. These factors frequently serve as the foundation of financial self-exclusion, which is legitimately observed in our context.

2.1.4. From planned behavior to technology acceptance: a theoretical explanation of the relationship between culture and finance

The Technology Acceptance Model (TAM) was developed by Ref. [59] to explain and understand how individuals adopt or reject new technology. This theory emphasizes perceived usefulness, perceived ease of use, attitude toward use, behavioral intention, external factors, previous experience, and demographic conditions, which may also play a role. The Technology Acceptance Model postulates that the decision to adopt technology is primarily influenced by the perception of its usefulness and ease of use. These perceptions lead to a favorable attitude toward using the technology, which in turn influences the behavioral intention to adopt the technology. The model has been widely used and extended in research on adopting information technologies. This theory is based on the theory of planned behavior.

The Theory of Planned Behavior (TPB), a psychological model developed by Ref. [60], is based on the Theory of Reasoned Action. According to this theory, individuals form an attitude toward a behavior based on their beliefs about the consequences of that behavior. The subjective norm represents the perceived influence of other's opinions on the decision to adopt a behavior, including social pressure and peer expectations. Perceived behavioral control reflects the individual's perception of their ability to perform the behavior, including perceived obstacles and confidence in their capabilities. Behavioral intention results from the interaction between attitude, subjective norm, and perceived behavioral control. It predicts actual behavior. In summary, TPB proposes that intentions to adopt a behavior are influenced by individual attitudes, social norms, and a sense of control. These intentions, in turn, predict actual behavior.

2.2. Summary of empirical works

According to Ref. [61], corporate culture is a pattern of fundamental principles that a particular group has discovered, established, and developed as a means of overcoming the challenges of external adaptability and internal cohesion. Corporate culture consists of the expectations and beliefs that drive employees' behavior. Financial and economic progress has recently underlined the significance of culture and its potential impact on several elements impacting society at large and the enterprise in particular [39,40,62]. Reuter [63] reviews the studies on the relationship between finance and culture.

The relationship between culture and finance has been emphasized on a large scale [6,39,40]. For this purpose [29], demonstrate, through a series of cross-country analyses, that national culture significantly affects household financial behavior. Karolyi [31], discovers that culture has a considerable impact on investment bias. According to Ref. [64], religion significantly impacts a country's debt. In fact, countries with a strong Protestant orientation appear to have a better management style (corporate governance, robust investor rights protection) than Catholic nations [22,65]. According to Ref. [6], national culture affects financial inclusion at various thresholds and indications.

At the micro level, the existing literature also shows the importance of culture for various managerial practices such as managerial attitudes [66], firm performance [67], and social capital structure [32]. Catană and Catană [68] show that there are important differences across the various dimensions of culture (social and organizational) and cultural practices and values in the financial sector companies in Romania. Almashhadani and Almashhadani [69] summarize the existing literature on the link between governance, culture, and corporate performance. Fiordelisi and Ricci [70] focus on the role that culture plays in whether the General Manager is replaced internally or externally and discover that the likelihood of employing an outsider is specifically negatively correlated with a creation-oriented culture.

In the finance literature, cultural diversity as defined by Ref. [24] has received a lot of attention [71]. In this regard, a distinction between individualistically oriented cultures and those which are collectively oriented is important [24,72].

Previous studies in the field of finance have looked at how cultural individuality affects key company decisions like investment strategies, the choice of debt maturity, cash holdings, and financial harmony [58,73]. According to Ref. [74], who base their argument on the trust emancipation theory, an individualistic culture is favorably related to financial inclusion. In companies with more familial relationships, contact with strangers is made easier by the progress of trust [[74], [75], [76]], whereas in companies with a high individualism culture, actors are expected to manage their own lives and belong to loosely connected groups that offer less assistance in a crisis [77]. As a result, they are advised to use formal market money for their financial security in the absence of informal support. Furthermore, in organizations where uniformity is promoted, it can restrict people's entrepreneurial spirit while compromising financial performance and economic judgments. [78], social trust is essential for financial companies. Guiso et al. [79] conclude that organizational culture is important for establishing useful rules and human behaviors for good financial decision-making.

Ozili [80] emphasizes that individuals who experience social exclusion are more likely to suffer from financial exclusion. In fact [81], shows a positive relationship between socialization and financial inclusion in a cross-country analysis. According to Ref. [82], those who practice pro-social religious conduct, which includes charitable giving, are less likely to be financially excluded. Accordingly, these authors believe that the creation of projects that encourage social involvement is necessary in the fight against financial marginalization. Therefore, at the macro level, considerable policy efforts should be made to remove all restrictions, utilizing all available policy tools, private sector partnerships, cooperation, and advocacy. Through community orientation and re-orientation initiatives, social restrictions such as informal regulations, cultural challenges, and prejudice should be removed.

According to Ref. [42], IPOs' companies with a robust, competitive, and innovative culture outperform others in terms of profitability and financial distress risk. Fang et al. [41], investigate whether corporate culture matter for firm value and stability during financial crises and find that it improves firm stability through greater support from capital providers. They find that in times of crisis, firms with a stronger control culture act more appropriately. In addition, the benefits of a control culture are particularly noticeable in enterprises with limited resources. Le Duyen et al. [83] aim to evaluate the impact of cultural norms on the shadow banking practices of businesses. Companies' financial success is found to be positively impacted by both market and hierarchical cultures.

Overall, the existing literature, especially concerning companies, is largely silent about the impact of corporate culture on reducing financial exclusion. Based on the foregoing, the main hypothesis of this study is that the social and organizational aspects of culture allow small businesses in Cameroon to significantly reduce financial exclusion. The following are the hypotheses for the present investigation.

H1

The social aspect of the culture considerably reduces financial exclusion in small businesses in Cameroon.

H2

Organizational culture helps reduce financial exclusion in small businesses in Cameroon.

3. Methodology

This section mainly discusses the methodology used in this investigation. Here are examine the origin and nature of the data, the model and the operationalization of the variables, and the estimation techniques.

3.1. Nature and source data

Small enterprises based in Cameroon are the focus of the empirical investigation conducted in this research. The National Institute of Statistics (NIS) classification criteria are employed. According to them, a very small firm and small company with less than 20 employees. The Cameroon economic system is mostly constituted of small enterprises (about 90% according to the [45]).

The sample choice is based on a non-probability technique, more precisely the convenience method. This method is regularly used in developing and undeveloped countries to adapt to the means available to the researcher since there is no secondary data. Similarly, it involves conducting a study on a portion of the population that has the same characteristics or engages in the same activities as the study population. For this study, data were gathered using a questionnaire in the cities of Douala, Bafoussam, Foumban, Foumbot, and Dschang in April, May, and June 2022. For instance, 206 questionnaires were administered but only 174 were returned and 13 questionnaires were deemed unusable. The final sample, therefore, consists of 161 firms.

3.2. Empirical model and operationalization of variables

The purpose of the study is to emphasize culture as an essential determinant of the level of financial inclusiveness in small businesses in Cameroon. Focusing on [6,84], corporate culture is captured through its social and organizational components. The modeling of the relationship between the latter and financial variables is based on a hypothetical-deductive method, and the epistemological orientation is positivism. The development of a theoretical and conceptual research model based on the literature is one of the requirements for such an approach. The conceptual model of this study is as presented in Fig. 1.

Fig. 1.

Conceptual model of the relationship between culture and inclusive finance.

The mathematical theoretical model of the study is as follows:

$$\mathbf{I}\mathbf{N}\_{\mathrm{FIN}}_{\mathbf{i}}={\mathit{\beta }}_{\mathbf{0}}+\sum _{\mathit{j}=\mathbf{1}}^{\mathit{K}}{\mathit{\beta }}_{\mathit{j}}{\mathit{X}}_{\mathit{j}\mathit{i}}+{\mathit{\epsilon }}_{\mathit{i}}\mathbf{j}=\mathbf{1},\mathbf{2},\mathbf{3}\dots \mathbf{k}(\mathbf{k}=\mathbf{5});\mathbf{i}=\mathbf{1},\mathbf{2},\mathbf{3}\dots \mathbf{n}(\mathbf{n}=\mathbf{161})$$

with ${\mathit{X}}_{\mathit{j}\mathit{i}}$ as explanatory variables j is associated with the firm i; β₀ the constant term; β_j the regression coefficients, n is the number of companies in the sample, and ${\epsilon }_i$ the error term. The empirical form of the model used to appreciate the relationship between culture and inclusive finance is as follows:

$${\mathit{I}\mathit{N}\_\mathit{F}\mathit{I}\mathit{N}}_{\mathit{i}}={\mathit{\beta }}_{\mathbf{0}}+{\mathit{\beta }}_{\mathbf{1}}.{\mathit{S}\mathit{o}\mathit{c}\_\mathit{C}\mathit{u}\mathit{l}}_{\mathit{i}}+{\mathit{\beta }}_{\mathbf{2}}.{\mathit{O}\mathit{r}\mathit{g}\_\mathit{C}\mathit{u}\mathit{l}}_{\mathit{i}}+{\mathit{\beta }}_{\mathbf{3}}.{\mathit{T}\mathit{O}}_{\mathit{i}}+{\mathit{\beta }}_{\mathbf{4}}.{\mathit{E}\mathit{D}\mathit{U}}_{\mathit{i}}+{\mathit{\beta }}_{\mathbf{1}}.{\mathit{A}\mathit{g}\mathit{e}}_{\mathit{i}}+{\mathit{\epsilon }}_{\mathit{i}}$$

where: IN_Fi = Inclusive finance; Soc_Cul = Social culture; Org_Cul = Organizational culture; TO = turnover or sales variation; Edu = Level of education; Age = Age of the manager; β₀ = Constant term; β_i = Regression coefficients and ${\epsilon }_i$ = the error term.

The operationalization of these variables is based on the literature. Culture, the explanatory variable, is captured through its social and organizational dimensions. Literacy and financial inclusion are used to measure inclusive finance.

3.2.1. Dependent variables: financial inclusion and literacy

Financial inclusion and financial literacy are used in this study as the two dimensions of inclusive finance. Financial knowledge, financial competence, and self-confidence are the three used components of financial literacy identified in the literature [9,85,86]. The operationalization information for each of these variables is summarized in Table 1.

Table 1.

Operationalization of financial literacy variables.

Variables	Please indicate your level of agreement with the following statements. Please select the number corresponding to your answer. 1- Strongly disagree; 2- Disagree; 3- Somewhat agree; 4- Agree; 5- Strongly agree	Code	authors
Financial Literacy	It is a good idea for someone to have several bank accounts	KNOW1	[86] [95] [9] [96] [97] [9]
	You have a good knowledge of the existence of banking products	KNOW2
	You regularly follow the financial news	KNOW3
	You have a good knowledge of insurance products	KNOW4
	The expenses you personally incur are wasteful in nature	KNOW5
	You have a good knowledge of the new payment methods (Mobile money, Express Union mobile money, credit card, online payment)	KNOW6
Financial competencies	You have a good knowledge of the functioning of bank accounts	COM1
	You have good expertise in bank credit and overdraft operations	COM2
	You have a good understanding of how savings accounts work	COM3
	You have a good understanding of the principle of bank interest calculation	COM4
	You always achieve your personal budget goals	COM5
	You always collect the maximum level of information on financial products before committing yourself to a financial operation	COM6
	You Consider several sources of information before your financial choices	COM7
	You have sufficient savings for your children's education	COM8
	You have sufficient savings for your retirement	COM9
	You have prepared financial strategies for your retirement	COM10
	You have a sufficient level of savings for illness	COM11
Self-Confidence	You have a good comprehension of the financial difficulties you face	CONF1
	When it comes to managing your personal finances, you always take advice	CONF2
	You trust the staff of financial services and institutions (MFIs, banks, etc.) in Cameroon	CONF3
	You are autonomous in managing your personal finances	CONF4
	You take risks in the management of your personal finances, and investments	CONF5
	You regret most of your financial decisions	CONF6
	You have a high level of personal confidence in managing your personal finances	CONF7
	You always pay your current transactions on time (no debt to a third party)	CONF8

Table 1 indicates that 6, 12, 7, and 25 items, respectively, are used to measure financial knowledge, financial skills, financial confidence, and global financial literacy. Financial inclusion is evaluated using ten items from the literature [84,[87], [88], [89]], as indicated in Table 2.

Table 2.

Operationalization of the financial inclusion variable.

Variables	Give your level of agreement with the following statements. Please choose the number corresponding to your answer. 1-Never; 2- rarely; 3- Sometimes; 4. Quite often 5- Very often	code	AUTHORS
Financial inclusion	You use your bank account for day-to-day transactions in your business	FI1	[98] [99]
	You have access to bank credit for your business needs	FI2
	You make bank savings for the future needs of your business	FI3
	You carry out operations in several banks for your company;	FI4
	You have taken out an insurance policy in the event of a claim	FI5
	For your company, you make bank transfers for transactions	FI6
	You make investments and trading on stock markets	FI7
	You make investments and trading in cryptocurrency	FI8
	You consult your accounts online	FI9
	You save for the future needs of your business	FI10

A 5-point Likert scale is used to evaluate each of these variables. For each of them, we believed it important to create a synthetic index to obtain reliable results. To ensure consistency between items, Principal Component Analysis (PCA) is performed. PCA's goal is to limit the number of used factors to a minimum of possible non-redundant variables [90]. The results for each of the created indices are shown in Table 3.

• -Financial inclusion.

Table 3.

Results of descriptive analyses: PCA of main variables.

Variables	KMO	Bartlett's test	Scheduled items	Items selected	Total factors	Selected factors	Total variance	Cronbach's Alpha
Social culture	0.662	0.000	12	12	12	5	67.752	0.595
Organizational Culture	0.556	0.000	11	11	11	5	68.925	0.624
Financial inclusion	0.651	0.000	10	7	7	3	64.524	0.752
Financial literacy	0.747	0.000	25	25	25	7	66.510	0.867
Financial knowledge	0.676	0.000	6	3	3	1	68.423	0.704
Financial competence	0.736	0.000	12	12	12	4	74.537	0.830
Self-confidence	0.575	0.000	7	6	6	3	60.342	0.483

Note: This table shows the results of the Principal Component Analysis (PCA) of all this study's variables.

As mentioned above, ten items are used to capture the financial inclusion variable. Principal component analysis is used because of the multidimensionality of the data. We employed Cronbach's alpha reliability test to make sure that the items were internally consistent. After item extraction, this reliability test displays a Cronbach's alpha coefficient of 0.752. Table 3 shows that 7 of the 10 items have been maintained for analysis after extraction. Additionally, 3 factors are incorporated in the index construction, resulting in a total explained variation of 64.52%. Table 3 demonstrates that the Bartlett statistic attached to this variable is significant at the 1% threshold with a KMO value above 0.5 (0.651), which is satisfactory and shows that the correlation matrix is in reality an identity matrix. This index is calculated using Principal Component Analysis (PCA). Table 4 provides information on how each item contributes to the financial inclusion index.

Table 4.

PCA result of financial inclusion variable.

Items	Components
	1	2	3
FI1	0.565	0.422	−0.228
FI3	0.244	0.787	0.074
FI5	0.830	−0.024	0.167
FI6	0.762	0.112	0.083
FI7	−0.097	0.090	0.818
FI8	0.355	0.049	0.662
FI10	−0.060	0.835	0.107
Eigenvalues	2.211	1.181	1.124
% variance explained	31.585	16.878	16.061
cumulative % cumulative variance explained	31.585	48.463	64.524
KMO Index	0.651
Barlett Chi Sphericity Test (P-Value)	143.511 (0.000)
Cronbach's Alpha	0.752

The most widely used PCA-derived indices, according to Refs. [90,91], are produced either from the first component or the proportional average of all factors obtained with the weights indicated by the proportional variances of each of the eigenvalues. The second approach is used in this study. Therefore, the created index for this variable is calculated and standardized on a scale from 0 to 1, where 0 denotes the constructed index's minimum value and 1 denotes its maximum level. The various indices for the financial literacy variable are created using the same methodology.

• -Financial literacy

The three indices that correspond to these three components and an overall index are constructed for the financial literacy variable. The internal reliability between the items was verified using Cronbach's Alpha reliability test. According to this test, Cronbach's Alpha coefficients for financial literacy, financial knowledge, financial competence, and self-confidence are 0.867, 0.704, 0.830, and 0.483, respectively. Likewise, Table 3 demonstrates that after extraction, these variables have 25, 3, 12, and 6 items retained, respectively, on the one hand, and 7, 1, 4, and 3 factors are held for the construction of the index, with a total explained variance estimated at 66.51%, 68.42%, 74.53%, and 60.34%, respectively. With a KMO value greater than 0.5, the Bartlett statistic associated with these variables is significant at the 1% threshold, which is satisfactory and shows the stability of the investigation carried out. The indices corresponding to each of these variables are constructed similarly to the financial inclusion index using the proportional average of all the factors derived with the weights denoted by the proportional variances of each eigenvalue. As a result, the constructed index for each variable is calculated and normalized on a scale from 0 to 1, with 0 being the lowest value and 1 being the maximum value. For the study's two main explanatory variables, the same analysis is repeated. Table 5, Table 6, Table 7, and Table 8, correspondingly, for financial literacy, financial knowledge, financial competence, and self-confidence, provide additional information on the contribution of each item used for the generation of the various financial literacy factor axes.

Table 5.

PCA results of financial knowledge variable.

Items	Component
	1
KNOW2	0.807
KNOW3	0.870
KNOW4	0.803
Eigenvalues	2.568
% explained variance	42.806
% cumulative explained variance	42.806
KMO Index	0.765
Barlett Chi Sphericity Test (P-Value)	195.872 (0.000)
Cronbach's Alpha	0.704

Table 6.

PCA results of financial capability variable.

Items	Components
	1	2	3	4
COM1	0.187	0.777	0.159	0.217
COM2	0.068	0.911	0.158	−0.009
COM3	0.073	0.872	0.113	−0.066
COM4	0.385	0.661	−0.138	0.302
COM5	0.011	0.135	−0.009	0.943
COM6	0.131	0.310	0.785	0.158
COM7	−0.002	0.032	0.903	−0.130
COM8	0.689	−0.112	0.306	0.296
COM9	0.870	0.193	−0.126	0.006
COM10	0.734	0.284	−0.066	−0.082
COM11	0.873	−0.004	0.125	−0.003
COM12	0.599	0.368	0.117	0.041
Eigenvalues	4.376	2.014	1.493	1.062
% explained variance	36.469	16.780	12.441	8.846
% cumulative explained variance	36.469	53.249	65.691	74.537
KMO Index	0.736
Barlett Chi Sphericity Test (P-Value)	937.620 (0.000)
Cronbach's Alpha	0.830

Table 7.

PCA results of financial self-confidence.

Items	Components
	1	2	3
CONF1	−0.119	0.772	−0.012
CONF2	0.024	0.638	0.067
CONF3	0.793	−0.010	0.032
CONF4	0.504	0.426	−0.302
CONF5	0.215	0.255	0.843
CONF6	0.402	0.351	−0.630
CONF7	0.725	−0.118	0.032
Eigenvalues	1.843	1.240	1.141
% variance explained	26.325	17.714	16.303
cumulative % cumulative variance explained	26.325	44.039	60.342
KMO Index	0.575
Barlett Chi Sphericity Test	90.738 (0.000)
Cronbach's Alpha	0.483

Table 8.

PCA results for global financial literacy variable.

Items	Components
	1	2	3	4	5	6	7
KNOW 1	0.273	0.293	0.307	−0.295	−0.177	−0.408	0.146
KNOW 2	0.777	−0.006	0.225	0.052	−0.101	−0.046	−0.027
KNOW 3	0.703	0.237	0.181	0.100	−0.112	−0.185	0.125
KNOW 4	0.576	0.336	0.106	0.184	−0.319	0.019	0.086
KNOW5	0.067	−0.066	0.251	−0.020	−0.063	−0.130	0.756
KNOW 6	0.465	0.076	0.314	0.161	0.209	0.264	0.222
COM1	0.780	0.185	0.137	0.011	0.270	−0.062	−0.038
COM2	0.868	0.073	0.055	−0.051	0.092	0.112	−0.065
COM3	0.848	0.070	−0.003	−0.065	0.050	0.102	0.008
COM4	0.527	0.448	−0.141	−0.135	0.358	0.062	−0.119
COM5	0.078	0.055	0.057	0.124	0.857	−0.098	−0.042
COM6	0.318	0.100	0.667	0.113	0.106	0.211	0.109
COM7	0.098	−0.033	0.813	−0.105	−0.124	−0.059	0.181
COM8	−0.064	0.692	0.342	−0.065	0.191	−0.092	−0.034
COM9	0.186	0.848	−0.055	0.069	0.001	0.098	−0.042
COM10	0.273	0.721	−0.068	0.001	0.013	−0.079	0.128
COM11	0.026	0.849	0.121	0.127	−0.037	0.120	0.056
COM12	0.342	0.555	0.217	0.137	0.018	0.168	−0.078
CONF1	0.103	0.141	0.262	−0.127	−0.171	0.786	0.059
CONF2	0.387	0.329	−0.230	−0.061	0.303	0.307	−0.080
CONF3	0.022	−0.068	0.106	0.787	0.198	0.010	0.131
CONF4	0.402	0.115	0.306	0.377	0.258	0.129	0.045
CONF5	−0.108	0.161	−0.260	0.131	−0.003	0.352	0.621
CONF6	0.107	0.256	0.739	0.237	0.101	0.087	−0.257
CONF7	0.016	0.385	−0.043	0.685	−0.207	−0.141	−0.109
Eigenvalues	6.687	2.490	2.148	1.639	1.367	1.277	1.020
% explained variance	26.746	9.962	8.590	6.557	5.468	5.107	4.080
% cumulative explained variance	26.746	36.708	45.299	51.855	57.323	62.430	66.510
KMO Index	0.747
Barlett Chi Sphericity Test	1873.674 (0.000)
Cronbach's Alpha	0.867

3.2.2. Explanatory variables: culture and controls

The culture variable is evaluated following its social and organizational dimensions using a 5-point Likert scale. Table 9 demonstrates that 12 items are used to evaluate the social aspect of corporate culture, according to the literature [[87], [88], [89]], whereas Table 10 shows that the organizational culture is apprehended from 11 items.

Table 9.

Operationalization of the social corporate culture variable.

Variables	Please indicate your level of agreement with the following statements. Please check the corresponding number. 1- Strongly disagree 2- Disagree 3- Somewhat agree 4- Agree 5- Strongly agree	code	AUTHORS
Social culture	The quality of communication between the members of the company is important	SC1	[84] [87] [89]
	There are people from various backgrounds within your company;	SC2
	Religion is important in your business;	SC3
	There is good cohesion and solidarity between the members of your company	SC4
	The presence of several ethnicities and races is important in your company	SC5
	Your company's employees may be absent for reasons of religion or tradition	SC6
	There are employees of different regions of Cameroon in your company	SC7
	French or English are the languages used in your company	SC8
	In your company you like or encourage employees who speak the dialect	SC9
	Respect for the other's culture is important in your company	SC10
	In your company, people of all origins have the same opportunities to succeed	SC11
	You promote gender equality in your company	SC12

Table 10.

Operationalization of the organizational culture variable.

Variables	Please indicate your level of agreement with the following statements. Please select the number corresponding to your answer. 1- Never; 2- Rarely; 3- Sometimes; 4. Quite often; 5- Very often	code	AUTHORS
Organizational Culture	You have a regulatory framework specific to your company (internal regulations, statutes)	OC1	[84] [89] [88]
	There is a global objective that the company has set and which it wishes to achieve in the future;	OC2
	There are mechanisms to ensure the interest of the group over that of the members of the company;	OC3
	Everyone's opinion is important in the company;	OC4
	In your company, employees are disciplined according to company guidelines;	OC5
	In your company you have your own strategies to achieve your goals;	OC6
	In your company, employees have the flexibility to take risks in the execution of their tasks;	OC7
	There are mechanisms for promoting and empowering employees in your company;	OC8
	You feel a sense of accomplishment in what you do;	OC9
	Decision-making in the company is participatory	OC10
	All those who are in the company consider it as their own property through the way they behave and work	OC11

Table 4 shows that in the Principal Component Analysis, which resulted in the selection of 5 components for each of these variables, none of these items were removed. The reliability test, concerning this PCA, reveals a Cronbach's Alpha coefficient for social culture and organizational culture of 0.595 and 0.624, respectively. Overall, the factors utilized to account for 67.75% and 68.92% of the data related to these variables, respectively. The Bartlett test is significant at the 1% level, and the KMO indicator associated with the two aspects of culture has values of 0.66 and 0.56 (both more than 0.5). All of the aforementioned information shows that the analysis was consistent and that the correlation matrix is an identity one. The methodology used to compute the inclusion and financial literacy indices is also used here to calculate the indexes linked to each of these dimensions of culture variable. Details concerning the contribution of the considered items to the construction of culture factors are in Table 11 and Table 12, respectively for social and organizational culture.

Table 11.

PCA results of social culture variable.

Items	Components
	1	2	3	4	5
SC1	−0.053	0.164	0.336	0.094	−0.740
SC2	0.582	0.346	−0.060	0.296	−0.116
SC3	−0.064	0.240	0.225	0.056	0.740
SC4	−0.278	−0.194	0.718	0.112	0.112
SC5	0.104	0.213	0.143	0.770	0.278
SC6	0.056	0.059	0.123	0.733	−0.231
SC7	0.758	−0.123	0.011	0.334	0.055
SC8	0.130	0.126	0.786	0.118	−0.138
SC9	−0.719	−0.120	0.017	0.306	0.000
SC10	−0.343	0.671	0.039	0.425	−0.029
SC11	0.090	0.621	0.581	0.056	0.022
SC12	0.308	0.763	−0.069	0.042	0.108
Eigenvalues	2.747	1.873	1.352	1.115	1.043
% variance explained	22.893	15.605	11.268	9.291	8.696
cumulative % cumulative variance explained	22.893	38.498	49.765	59.057	67.752
KMO Index	0.662
Bartlett Chi Sphericity Test (P-Value)	354.022 (0.000)
Cronbach's Alpha	0.595

Table 12.

Factor analysis of organizational culture.

Items	Components
	1	2	3	4	5
CO1	−0.138	0.761	0.166	−0.058	0.057
CO2	−0.004	0.039	0.842	0.009	−0.059
CO3	0.586	−0.091	0.530	−0.167	0.209
CO4	0.806	0.028	0.060	−0.005	−0.312
CO5	−0.059	0.072	0.020	0.873	−0.020
CO6	0.051	0.136	0.622	0.549	0.045
CO7	0.298	0.579	0.196	0.226	0.277
CO8	0.046	0.818	−0.178	0.098	−0.066
CO9	−0.037	0.069	0.027	0.046	0.910
CO10	0.555	0.058	−0.089	−0.013	0.458
CO11	0.561	0.005	−0.019	0.507	0.229
Eigenvalues	2.457	1.607	1.309	1.118	1.089
% variance explained	22.341	14.612	11.904	10.168	9.902
cumulative % cumulative variance explained	22.341	36.952	48.856	59.024	68.925
KMO Index	0.556
Bartlett Chi Sphericity Test (P-Value)	284.215 (0.000)
Cronbach's Alpha	0.624

The control variables used in this research include.

• -Level of education: This is a dummy variable taking the value of 1 if the manager has a primary education, 2 if he/she has a secondary education, and 3 if he/she has a university education.
• -Age of the manager: This is a nominal variable that takes the value 1 if the age of the manager is less than 25 years old, 2 if he is between 25 and 35 years old, 3 if his age is between 36 and 45 years old, and 4 if his age is more than 45 years old.
• -Variation of the turnover: This is a nominal variable that takes the value of 1 if it has decreased, 2 if it has remained stable, and 3 if there has been an increase in turnover compared to previous years.

3.3. Statistical analysis and estimation method

In addition to creating the index based on the results of the PCA and analyzing descriptive statistics, we employed several simple linear regressions via Ordinary Least Squares and the top-down estimation method. The latter estimation method is employed as a robustness strategy to guarantee that the findings are independent of the inclusion or exclusion of a variable in the estimated model. In contrast to bottom-up estimation, the top-down methodology begins with the general model and gradually eliminates the variables whose effect on the dependent variable is not significant. These methods are used since the variables are quantitative. Indeed, after building indices using the Principal Component Analysis technique, the initial Likert scale variables are converted into quantitative variables. The Variance Inflation Factor (VIF) statistic,2 the tolerance, and the Durbin-Watson (DW) are computed to ensure that the estimated model is free of autocorrelation and/or multicollinearity problems. According to Ref. [92], the VIF must be less than 10 and the tolerance must be close to 1 to show that there is no collinearity. Similarly, an increase in the DW statistic value above 1.65 indicates the absence of autocorrelation.

4. Results and discussions

We focus here on the results of the descriptive and explanatory analyses.

4.1. Results of the descriptive analyses

Table 13 summarizes the demography of respondents.

Table 13.

Profile of respondents.

Characteristics of respondents	Items	Number	frequency
Position held	Business owner	94	58.4
	Other managers	67	41.6
Type	Male	103	64.0
	Female	58	36.0
Age	Under 25 years old	39	24.2
	Between 25 and 35 years old	65	40.4
	Between 36 and 45 years old	33	20.5
	Over 45 years old	24	14.9
Level of study	Primary	10	6.2
	Secondary	73	45.3
	Superior	78	48.4
Experience in the sector	Less than one year	26	16.1
	Between 1 and 3 years	23	14.3
	Between 3 and 5 years	28	17.4
	Between 5 and 10 years	41	25.5
	More than 10 years	43	26.7
Total		161	100

Note: This table indicates the descriptive (number and frequency) of the respondents characteristics.

Statistics in Table 13 reveal that 58.4% of respondents are business promoters and 41.6% are other managers. Among the respondents, men are the most numerous (64% versus 36% of women). Most of them (64.6%) are under 35 years old. Little participation was observed among those over 45 years old. Regarding the level of education, 48.4% of the respondents held a higher education diploma, and 45.3% had a secondary education, and only 6.2% had primary education. Most of them also have at least three years of professional experience with the company. Table 14 summarizes the company profile.

Table 14.

Company profile.

Criteria	Items	Number	Frequency
Activity sector	Trade	73	45.3
	Service	49	30.4
	industry	27	16.8
	Other	12	7.5
Duration of the company's life	Less than 5 years	44	27.3
	5–10 years	65	40.4
	More than 10 years	51	32.3
Number of employees	Less than 5	55	34.16
	6 to 9 employees	47	29.19
	10 and more	59	36.64
Sales (in millions of FCFA)	Less than one million	38	23.6
	1 à 3	24	14.9
	3 à 5	20	12.4
	5 à 10	39	24.22
	10 and more	40	24.84
Evolution of the turnover	Downward	30	18.63
	Stable	66	40.99
	On the rise	65	40.37
RCCM	Yes	100	62.11
	No	61	37.89
	Total	161	100

Note: This table indicates the descriptive (number and frequency) of the companies' characteristics.

The characteristics of the companies under investigation are shown in Table 14. They are mainly in the commercial sector (45.3%), services (30.4%), and industry (16.8%). The majority of these companies (72.04%) have existed for more than five years. They have at least 5 employees mainly (65.83%). Speaking of the turnover of the companies in the sample, 23.6% declare having a turnover of less than one million CFA francs, 14.9% between 1 million and 3 million, 12.4% between 3 million and 5 million, 24.22% between 5 and 10 million, and 24.84% of them have a turnover of more than 10 million CFA. This turnover increased in 40.37% of cases, while stability and a decrease were observed in 40.99% and 18.63% of cases, respectively. Concerning registration in the Trade and Personal Property Credit Register, 62.11% of these companies declare having completed this administrative formalization.

4.2. Culture and inclusive finance in small businesses in Cameroon: estimation results

4.2.1. The main results

4.2.1.1. The influence of culture on financial literacy

The results of the relationship between culture and financial literacy are in Table 15, according to the considered dimension of financial literacy (knowledge, skill, and confidence). Estimations are with Ordinary Least Squares (OLS).

Table 15.

Effect of culture on financial literacy.

Variables	Financial Knowledge			Financial Competence			Financial confidence
	Coef (P-Val)	Standard error	Tolerance (VIF)	Coef (P-Val)	Standard error	Tolerance (VIF)	Coef (P-Val)	Standard error	Tolerance (VIF)
Constant	0.150** (0.030)	0.146		0.197** (0.045)	0.098		0.448*** (0.000)	0.085
Turnover	0.24 (0.382)	0.027	0.964 (1.038)	0.045** (0.014)	0.018	0.964 (1.038)	−0.007 (0.640)	0.016	0.964 (1.038)
Education	0.138*** (0.000)	0.035	0.899 (1.113)	0.040* (0.086)	0.023	0.899 (1.113)	0.010 (0.615)	0.020	0.899 (1.113)
Age	0.250 (0.256)	0.022	0.901 (1.110)	0.030 (0.840)	0.014	0.901 (1.110)	−0.004 (0.726)	0.013	0.901 (1.110)
Social Culture	−0.815 (0.385)	0.097	0.973 (1.027)	−0.060 (0.929)	0.065	0.973 (1.027)	−0.003 (0.961)	0.057	0.973 (1.027)
Organizational culture	0.370*** (0.000)	0.040	0.937 (1.067)	0.357*** (0.000)	0.067	0.937 (1.067)	0.099* (0.090)	0.058	0.937 (1.067)
	Adjusted R2 = 0.133 Calculated F = 5.651 P-Value = 0.000 DW = 1.912			Adjusted R2 = 0.181 Calculated F = 7.701 P-Value = 0.000 DW = 1.880			Adjusted R2 = 0.08 Calculated F = 3.206 P-Value = 0.081 DW = 1.744

Note: The dependent variable in this model is financial literacy measured across three dimensions (knowledge, skill, and confidence). ***, **, *: indicates that the coefficients involved are significant at the 1%, 5%, and 10% thresholds respectively.

Table 15 illustrates that none of the three estimated models exhibits estimation bias because the tolerance value for each variable is globally close to 1, and the VIF value for each variable is generally lower than 10. Additionally, each model's DW value is higher than 1.65. As a result, the results are interpretable because models are free of collinearity and autocorrelation issues. For each of the three models, the value of the Fisher's calculated statistic (F calculated) is significant at the acceptable threshold. The R² value shows that, in terms of financial knowledge, financial competence, and self-confidence, the independent variables explain 13.33%, 18.10%, and 8% of the variation, respectively. The constant is also significant, suggesting that additional variables may be used in explaining financial literacy.

According to results of Table 15, there is a positive relationship between organizational culture and all components of financial literacy. This link is significant at the 1% level for knowledge and competence and the 10% level for self-confidence. Therefore, an increase in company culture also results in an improvement in financial literacy. In other words, promoting stronger integration and corporate culture in Cameroon results in a decrease in the financial exclusion of managers in these companies. This finding implies that small business managers in Cameroon, in order to reduce financial exclusion, need to focus on taking cultural aspects into account. This is in accordance with [6,29], and [74]. However, it runs counter to the individualism-supporting logic put forth by Ref. [77].

Regarding the control variables, it is important to point out that, from Table 15, there is a statistically significant positive link between sales variation and financial literacy at the 5% level. This implies that financial literacy is positively impacted by firm size. The larger the company, the more financially literate its managers. Additionally, we discover a strong and positive correlation between education levels and financial skills and knowledge. Therefore, the likelihood that a person will have better knowledge and skill in financial problems, as well as face a lower risk of financial exclusion, increases with the level of education. Furthermore, the association between social culture and all three aspects of financial literacy is negative and insignificant. In a similar vein, manager age is not a significant determinant of financial literacy despite being positively associated.

4.2.1.2. Influence of culture on financial inclusion

The estimation results displayed in Table 16 refer to when financial inclusion is the dependent variable.

Table 16.

Culture effect on financial inclusion.

	Coefficient	P-Val	Standard error	Tolerance	VIF
Constant	0.328***	0.008	0.122
Turnover	0.034	0.132	0.023	0.964	1.038
Education	−0.016	0.587	0.029	0.899	1.113
Age	0.041**	0.026	0.018	0.901	1.110
Social culture	−0.002	0.976	0.081	0.973	1.027
Organizational culture	0.182**	0.031	0.083	0.937	1.067
Adjusted R2 = 0.059; F calculated = 5.651; P-Value = 0.000; DW = 1.912

Note: the dependent variable is financial inclusion***, **, *: indicates that the coefficients involved are significant at the 1%, 5%, and 10% thresholds respectively.

The findings in Table 16 allow us to conclude that there is no problem with collinearity and autocorrelation. Indeed, for all of the study's variables, VIF is significantly less than 10 and tolerance is very close to 1. Additionally, DW has a value greater than 1.65. The constant and Fischer statistic is significant at the 1% level. According to the R² value, the model's variables account for just under 6% of the variation in financial inclusion.

Financial inclusion is strongly correlated with manager age. This makes sense given that young individuals in Cameroon have the least access to financial services. According to Ref. [93], age is an important factor in financial exclusion. Social culture exhibits the negative link; however, it is not statistically significant. In a similar vein, turnover and education are not important factors in determining financial inclusion.

Organizational culture serves as a base for enhancing financial literacy, in contrast to its social component. Indeed, the results provided in Table 16 show that the latter has a positive and significant impact on access to financial services. Consequently, if cultural aspects are better taken into account in the choice, orientation and use of financial services, their accessibility is enhanced. This result is in line with [94], who find that corporate culture plays a significant role in determining financial development. Guiso et al. [79] claim that corporate culture is a factor that is underappreciated but may be crucial in building norms and human behaviors that encourage sound financial decision-making.

4.2.2. Robustness analysis

To confirm the robustness of these findings, the estimations are repeated using a top-down linear regression estimation method and an overall financial literacy index rather than its three measures.

4.2.2.1. Influence of culture on global financial literacy

Compared to the findings in Table 15, where financial literacy is evaluated across its three dimensions, Table 17 reveals that the influence of culture on financial literacy has not changed. A positive and strong correlation between organizational culture and the global financial literacy index still exists. Financial literacy continues to be negative but not significantly related to social culture. These findings support the idea that organizational climate plays a role in reducing financial exclusion.

Table 17.

Effect of culture on overall financial literacy.

	Coef	P-Val	standard error	Tolerance	VIF
Constant	0.418***	0.000	0.081
Turnover	0.006	0.680	0.015	0.964	1.038
Level of study	0.026	0.181	0.020	0.899	1.113
Age	0.016	0.177	0.012	0.901	1.110
Social culture	−0.001	0.982	0.054	0.973	1.027
Organizational culture	0.199***	0.000	0.056	0.937	1.067
R2 adjusted = 0.057; F-Calculated = 2.827**; P-Value = 0.018; DW = 2.077;

Note: The dependent variable is the global financial literacy index. ***, **, *: indicates that the coefficients involved are significant at the 1%, 5%, and 10% thresholds respectively.

4.2.2.2. Effect of culture on financial literacy and inclusion: top-down linear estimation results

The prior findings were obtained using standard linear regression. It is important, in the present subsection, to confirm the validity of the findings. For this purpose, top-down linear regression, another estimating method, is employed. This method consists of sequential regression including iterations. Starting with the findings from the traditional regression, it involves gradually removing the variables for which the effect is not significant. The objective is model stability, and in contrast to ascending regression, where variables are added gradually with the researcher's participation, this method operates on the automatic elimination of variables based on how significantly they contribute to the explanation of the investigated phenomenon. The models with financial inclusion and financial literacy as the dependent variables are thus estimated using this estimation technique.

4.2.2.3. Culture and financial literacy: top-down estimation

Intending to determine the variable that influences the level of literacy in small firms in Cameroon, Table 18 lists the several iterations that were conducted regarding the influence of business culture on financial literacy.

Table 18.

Corporate culture on financial literacy: robustness test.

		Financial Literacy		Financial knowledge		Financial competence		Self-confidence
		Coef	Standard error	Coef	Standard error	Coef	Standard error	Coef	Standard error
1	Constant	0.418*** (0.000)	0.081	−0.150 (0.308)	0.146	0.197** (0.045)	0.098	0.448*** (0.000)	0.085
	Turnover	0.006 (0.680)	0.015	0.024 (0.382)	0.027	0.045** (0.014)	0.018	−0.007 (0.640)	0.016
	Education	0.026 (0.181)	0.020	0.138*** (0.000)	0.035	0.040* (0.086)	0.023	0.010 (0.615)	0.020
	Age	0.016 (0.177)	0.012	0.025 (0.256)	0.022	0.003 (0.840)	0.014	−0.004 (0.726)	0.013
	Social Culture	−0.001 (0.982)	0.054	−0.085 (0.385)	0.097	−0.006 (0.929)	0.065	−0.003 (0.961)	0.057
	Organizational Culture	0.199*** (0.000)	0.056	0.370*** (0.000)	0.100	0.357*** (0.000)	0.067	0.099* (0.090)	0.058
	R2 adjusted	0.057		0.133		0.181		0.140
2	Constant	0.417*** (0.000)	0.077	−0.188 (0.180)	0.140	0.194** (0.038)	0.093	0.446*** (0.000)	0.081
	Turnover	0,006 (0.677)	0.015	0.026 (0.340)	0.027	0.045 (0.013)	0.018	−0.007 (0.641)	0.016
	Education	0.026 (0.179)	0.019	0.138*** (0.000)	0.035	0.040* (0.086)	0.023	0.010 (0.615)	0.020
	Age	0.016 (0.174)	0.012	0.023 (0.289)	0.022	0.003 (0.846)	0.014	−0.004 (0.721)	0.013
	Organizational Culture	0.198*** (0.000)	0.055	0.360 (0.000)	0.99	0.356 (0.000)	0.066	0.099* (0.088)	0.057
	R2 adjusted	0.063		0.134		0.186		0.035
3	Constant	0.427*** (0.000)	0.073	−0.146 (0.272)	0.132	0.205*** (0.008)	0.076	0.430 (0.000)	0.066
	Education	0.028 (0.151)	0.019	0.143*** (0.000)	0.035	0.045** (0.012)	0.018	−0.007 (0.634)	0.016
	Age	0.016 (0.170)	0.012	0.023 (0.279)	0.022	0.039* (0.083)	0.022	0.012 (0.538)	0.020
	Organizational Culture	0.198*** (0.000)	0.055	0.359*** (0.000)	0.099	0.353*** (0.000)	0.064	0.103* (0.069)	0.056
	R2 adjusted	0.068		0.135		0.191		0.05
4	Constant	0.490*** (0.000)	0.058	−0.058 (0.582)	0.105			0.417*** (0.000)	0.060
	Education Organizational Culture	0.021 (0.261) 0.183*** (0.001)	0.019 0.054	0.134*** (0.000)	0.033			0.011 (0.586)	0.019
				0.338*** (0.001)	0.097			0.103* (0.068)	0.056
	R2 adjusted	0.070		0.134				0.010
5	Constant	0.544** (0.000)	0.033					0.444*** (0.000)	0.034
	Organizational Culture	0.177*** (0.001)	0.054					0.100* (0.075)	0.056
	R2 adjusted	0.063						0.014

Note: The dependent variable is global financial literacy and its three components. ***, **, *: indicates that the coefficients involved are significant at the 1%, 5%, and 10% thresholds respectively.

Table 18 shows that a maximum of five iterations is required to achieve model equilibrium if the global financial literacy index and self-confidence are dependent variables. Three and four iterations, respectively, are needed to reach model stability for financial knowledge and skills. Another significant finding is that social culture is the first variable to be automatically eliminated from the model, indicating that it is less significant than all other used explanatory variables. Furthermore, regardless of the dependent variable, organizational culture is the only one present in the model's stable state. At the standard threshold, its effect is positive and significant. Therefore, the results of this alternate estimating strategy conform to those of Table 15, Table 17. Since organizational culture has a positive and significant effect on financial literacy, the changing technique has no bearing on the result obtained. The same research is done again using financial inclusion as a measure of inclusive finance.

4.2.2.4. Culture and financial inclusion: top-down estimation results

Table 19 highlights the results of the top-down estimation of the relationship between financial inclusion and culture.

Table 19.

Culture and financial inclusion: top-down estimation results.

	Variables	Coef	P-Val		Standard error	Model Fit
1	Constant	0.328***	0.122		0.008	F Calculated = 2.900 P-Value = 0.016 Adjusted R2 = 0.059
	Turnover	0.034	0.023		0.132
	Education	−0.016	0.029		0.587
	Age	0.041**	0.018		0.026
	Social Culture	−0.002	0.081		0.976
	Organizational Culture	0.182**	0.083		0.031
2	Constant	0.327***		0.116	0.006	F Calculated = 3.650 P-Value = 0.007 Adjusted R2 = 0.065
	Turnover	0.034		0.022	0.128
	Education	−0.016		0.029	0.585
	Age	0.041**		0.018	0.024
	Organizational Culture	0.181**		0.082	0.029
3	Constant	0.283***		0.085	0.001	F Calculated = 4.789 P-Value = 0.003 Adjusted R2 = 0.070
	Turnover	0.032		0.022	0.146
	Age	0.038**		0.017	0.028
	Organizational Culture	0.188**		0.081	0.022
4	Constant	0.357***		0.068	0.000***	F Calculated = 6.069 P-Value = 0.003 Adjusted R2 = 0.063 DW = 2.009
	AGE	0.039**		0.017	0.027**
	Organizational Culture	0.185**		0.082	0.025**

Note: The dependent variable is financial inclusion. ***, **, *: indicates that the coefficients involved are significant at the 1%, 5%, and 10% thresholds respectively.

According to the findings in Table 19, the model is stable after 4 iterations. Social culture is the first factor taken out of the model, just like financial literacy. Financial inclusion is significantly influenced by two factors: age and organizational culture. The latter cultural characteristic and financial inclusion continue to have a positive relationship. This shows that the connection between the two investigated variables is not significantly affected by the change in the estimation method.

It can be concluded that when culture is measured by its organizational component, considering it in businesses results in a decrease in financial exclusion. This finding implies that a firm's stakeholders can have a wider understanding, knowledge, and regularity in using financial instruments if they have a better awareness of the reality, customs, and traditions of that company. The Cameroonian context's great cultural and religious diversity might be used to explain the negative or minor effects of social culture. These results give legitimacy to the proposed theories, including the neo-institutional theory, the emancipation theory of trust, and the theory of access opportunities. Indeed, the firm as an institution, through its culture and considering mutual trust between its stakeholders, contributes to the reduction of financial exclusion.

Therefore, companies must, in their management style, promote actions that strengthen their culture rather than the social culture. The state must also take into account the cultural aspect of businesses and society at large to make financial services more accessible.

5. Conclusion

Given its importance in stimulating economic growth, reducing poverty, and preventing financial exclusion, access to financial services is one of today's most important issues. While very important, the relationship between culture and finance has received very little attention in terms of both theoretical and empirical research. Therefore, the goal of this study was to show how culture affects the financial literacy and inclusion of small business managers in Cameroon. Particularly in Cameroon, small enterprises are important for the growth of a country's economy. They raise household incomes and create jobs. They account for more than 90% of all firms operating in Cameroon [45].

The three major components of financial literacy used in this article are knowledge, skills, and confidence in money matters. To confirm the robustness of the findings, a general indicator of financial literacy was also created. Organizational and social aspects of culture are considered. We developed four indices to measure financial literacy, two indices to measure company culture, and one index to measure financial inclusion based on principal component analysis. The data used are from a survey carried out by the Center for Study and Research in Management and Economics as part of a project that focuses on the financial inclusion of enterprises in Cameroon in 2022. It included 161 companies in the cities of Douala, Bafoussam, Foumban, Foumbot, and Dschang.

Different estimations were carried out using the Ordinary Least Squares approach to verify the main formulated hypothesis. As part of the robustness analysis, a top-down estimation is also done. The findings demonstrate that, in contrast to social culture, there is a positive and significant relationship between organizational culture and inclusive finance, irrespective of the financial variable taken into consideration. In addition to the variation in the company's turnover, the age and education of the manager are also important determinants of inclusive finance.

These results have the clear implication that stakeholders appear to have greater access to financial services, better financial knowledge and abilities, and more confidence in handling economic concerns in companies where the focus is on organizational culture rather than social culture. Through these results, this paper also attempts to draw attention to some cultural characteristics in Cameroon companies and to the examples of their potential impact on financial literacy. Policymakers of Cameroon shall be also aware that they need to take into consideration the effect of cultural traits on financial knowledge, financial abilities and confidence in their socio-economic and political strategies in the direction of companies. Another study might investigate the relationship in a larger company's sample. The culture of companies in the finance sector, and any connections that may exist between culture and the adoption of Fintech tools in Cameroon companies and by individuals is another research orientation. Relationships between culture, governance methods, information quality, and accounting procedures are also interesting avenues of research.

Data availability statement

The datasets used in this research are available from the corresponding author on reasonable request.

Funding

No funding was received for conducting this study.

Ethical approval

This article does not contain any studies with human participants performed by any of the authors’.

CRediT authorship contribution statement

Prince Hikouatcha: Writing – review & editing, Writing – original draft, Supervision. Alain Gilles Tagne Foka: Writing – review & editing, Writing – original draft, Software, Methodology. Carine Laguarta Tindang Kountelejouo: Writing – review & editing, Writing – original draft, Conceptualization. Hervé Mboyou Mfokue: Writing – review & editing, Writing – original draft, Software, Investigation, Data curation.

Declaration of competing interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.