Mobile Money Services and Growth of Small and Medium Enterprises in Mukono Municipality
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Date
2019-11
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Publisher
Uganda Christian University
Abstract
This study set to examine mobile money services and the Growth of Small and Medium Enterprises in Mukono Municipality. The study examined the influence of mobile payments on the growth of SMEs, established the influence of mobile finance on the growth of SMEs and determined the effect of mobile banking on the growth of SMEs in Mukono Municipality. A descriptive survey design using a sample of 108 respondents was adopted. Simple random sampling technique was used to select the respondents and data was collected using well designed structured questionnaires.
Findings reveal that SMEs accept payments through mobile money from their clients and this is revealed by a mean value of 3.6204. It was found that the presence of mobile finance relieves SMEs from the problem of having to open a bank account as shown by mean value of 3.5630. The study also found that mobile banking enables SMEs to withdraw cash from their bank account and this is shown by the mean value of 3.6944. In addition, mobile money services have positive correlation to the growth of SMEs equal to 0.837 and the p-value is .000 which is less than 0.01.
In conclusion, there is a strong positive relationship between mobile payments, mobile finance, mobile banking and the growth of SMEs.
The study recommends that SMEs should put emphasis on mobile payments in order to make business to transfer when making purchases from suppliers, customer to the business transfers when customers buy goods from the business and for debt collection and for credit sales so as to ensure improved performance and growth. SMEs should use mobile finance services so as to assist them to pay for their insurance premiums, accumulate assets and obtain credit. In addition, SMEs should also use mobile banking (m-banking) to undertake financial transaction linked to their account and have access to services such as performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device.
Description
This is a dissertation.
Keywords
Mobile Money Services, Small and Medium Enterprises - SMEs, Digital money