INFLUENCE OF MOBILE MONEY SERVICES ON THE GROWTH OF SME IN NAKURU TOWN KENYA

Abstract

Technology is consistently cited as one of the greatest challenges faced by small and medium enterprises (SMEs) around the world. It is widely recognized that technology is invaluable for improving efficiency, accuracy, increasing outreach and reducing costs. However, many SMEs lack sufficient funds to invest in suitable backend technologies, or operate in regions where access to critical infrastructure such as the Internet remains scarce. One of the recently emerging technologies in the SMEs industry is the use of mobile phone technology for both banking and remittance. This study sought to examine the influence of mobile money services on the growth of SMEs in Nakuru town Kenya. Therefore the study sought to examine the influence of mobile payments, mobile finance and mobile banking on the growth of SMEs in Nakuru town Kenya. Descriptive survey research design was used in the study. The target population included all the SMEs in Nakuru town Kenya. A sample of 100 SME entrepreneurs was taken to be the respondents representing the other SMEs in town. Purposive sampling technique used to pick out the SMEs employing simple random sampling. Questionnaires were used for data collection constructed on a five point Likert scale containing close ended questions. The questionnaire pilot tested on ten percent of the sample population to enable the researcher evaluates the reliability and validity of the questionnaire. The collected data filtered, organized and corded before data analysis. Statistical Package for Social Sciences (SPSS) version 24 software used for data analysis. Analysis was done in form of descriptive and inferential statistics. Descriptive statistics included the means, standard deviations, frequencies and percentages while inferential statistics included coefficient of determination and analysis of variance. Findings were presented in statistical tables accompanied by relevant discussions. The study established that mobile payments, mobile finance and mobile banking had positive significant relationships with the growth of SMEs. Further regression analysis demonstrated that the three variables had significant influence on the growth of SMEs in Nakuru CBD. Multiple regression analysis indicated that the three independent variables taken together were significant in explaining the variation in growth of SMEs in Nakuru CBD. The study concluded that mobile money services have significant influence on the growth of SMEs in Nakuru CBD. Therefore the researcher recommended that mobile money service providers should encourage SMEs traders to adopt the use of mobile money services through enhanced advertisement.