Effect of mobile money services on the growth of Small and Medium Enterprises in Kenya - an explanatory study

Abstract

The purpose of the study was to establish the Effect of Mobile Money Services on the Growth of Small and Medium Enterprises in Kenya. This study investigated the effect of covered transaction cost, financial accessibility and convenience on the growth of SMEs .. The study adopted cross sectional descriptive survey design. The study employed Technology Acceptance Model and Diffusion of innovations theory. The target population was students from the six schools in University of Nairobi. The study targeted 214 registered businesses owners. The study had a sample size of 50 respondents. Questionnaires were used for data collection. Validity of the research instruments was ensured through discussing with the supervisor and colleagues. Reliability was ensured by undertaking a pre-test. The research utilized descriptive analysis for each of the questions asked in the questionnaires presenting them in tables and figures. The findings of this research are considered important in that they provided insight into how mobile money transactions shape and influence the growth of metalwork sector in Nairobi County. This offered directives to metalwork business owners or operators in regard to the use of mobile money: how to use them to expand their business. In addition; mobile money services providers may use them to provide greater support and enhance customers' convenience to use the technology. Based on the findings, the government can work together with the mobile money service providers to enhance the use of mobile money services among metal work artisans. The findings indicated that transaction cost, financial accessibility and convenience positively influences the growth of SMEs.