Mobile Money Services and Financial Performance of Small and Medium Enterprises in Garissa County, Kenya
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Date
2023
Authors
Khorow, Ahmed Muhumed
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Technology is one of the biggest problems that confronts small and medium-sized
businesses (SMEs) globally is according to numerous studies. Technology is universally
acknowledged to be vital for enhancing effectiveness, precision, expanding reach, and
lowering costs. Nevertheless, numerous SMEs lack the funding to make investments
inappropriate back-end technologies or are located in areas with limited access to vital
infrastructure, like the Internet. Utilization of mobile phone technology for banking and
remittance is one of the most recent innovations in the SMEs sector. This study looked on
how mobile money services affect the financial health of SMEs in Garissa County,
Kenya. The study's specific objectives were to ascertain the impact of mobile banking,
mobile payments, and mobile financing on the financial performance of SMEs in Garissa
County, Kenya. The study was based on the theories of agency, technology advancement,
dynamic capability, and innovation. The study utilized a descriptive survey research
design. All SMEs in Kenya's Garissa County were included in the target population. The
respondents were a sample of 334 SME owners who spoke on behalf of the other SMEs
in the county. The study used a straightforward random sampling method. questionnaires
were employed to collect data. The data was analyzed through version 24 of the
Statistical Package for Social Sciences (SPSS) software. Both descriptive and inferential
analysis were done on the data in the study using statistics. Inferential statistics also
incorporated the coefficient of determination and the analysis of variance, whilst
descriptive statistics only comprised means, standard deviations, frequencies, and
percentages. Multiple regression analysis was utilized in the study to show how the
variables are related linearly. Tables and charts were utilized to display the data. The
study findings suggests that majority of the respondents agreed that mobile money
payment, mobile money financing and mobile money banking effected the financial
performance of SMEs in Garissa County. The results also demonstrated that mobile
money services and financial performance of SMEs in Garissa were positively and
significantly correlated. The study came to a conclusion that mobile money payment,
mobile money financing and mobile money banking had a significant impact of financial
performance of SMEs in Garissa County, Kenya. The study recommended that that all
SMEs should include mobile money services into their business processes to maintain
their competitiveness and that that communication companies offer mobile money
services with more enticing terms that might be designed exclusively for SMEs. The
researcher suggested further studies to encompass a broader field of study than just one
county and a study on the impact that mobile money services have on organizational
performance of other big corporations.
Description
A Research Project Submitted to the School Business,
Economics and Tourism in Partial Fulfillment for
Requirements of the Award of Master in Business
Administration (Finance Option) of Kenyatta University
Keywords
Mobile Money Services, Financial Performance, Small and Medium Enterprises, Garissa County, Kenya