African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4094

Full Length Research Paper

Determinants of business companies’ economic performance in Burkina Faso

Zakaya Ramde
  • Zakaya Ramde
  • Chamber of Commerce and Industry, Burkina Faso.
  • Google Scholar


  •  Received: 31 December 2018
  •  Accepted: 11 April 2019
  •  Published: 31 January 2020

Abstract

This study examines the determinants of entreprises economic performance in trade, industry and services sectors in Burkina Faso. Based on data from a sample of 179 companies of 2013 financial statements, various analyzes highlight effects of economic, financial, environmental and managements variables on company performance. The results of econometric estimations using the logit model show the significance of investments, seniority or companies ages, debt ratio, employee salaries and geographical location on companies economic performance in the three sectors. In addition, manager gender and nationality are decisive in industrial sector while employee total wages and productivity are in services. It therefore appears the necessity to develop general economic policies that are appropriate for companies but also specific to the different sectors of activity in the country.

 

Key words: Economic performance, sector of activities, logit model.