Abstract
The introduction of mobile money transfers (MMT) services has increased access to banking services among business entrepreneurs. This facilitates quick and secure platform for small savings to a majority of both rural and urban populations. The MSEs are increasingly adopting the use of mobile money transfers to increase the quality of their services and promote growth. However, limited research has been done on the impact of MMT services on the small and micro-enterprises. This study aimed at investigating the effect of mobile money transfers on the MSEs success factors, growth and expansion. The survey was conducted through administration of questionnaires and interviews of MSEs operators in Thika Town, Kenya. Data analysis was done using multivariate techniques, to a deeper extent the factor analysis. It was evident from the factor analysis, using principal component analysis that three factors were extracted which loaded highly on given variables. The factors were suggested to be demographic, accessibility and satisfaction, after considering the variables that loaded on each factor. The findings were expected to be useful to the mobile payments technology providers, by offering greater entrepreneur support to the micro business operators and enhance customers’ convenience to use the technology. The government can also use these findings when designing appropriate plan of action to encourage many more business operators to adopt the MMT services through funding and other platforms.
Highlights
Background of Study: In Kenya, the micro and small enterprises are multifariously referred
About 10.4% of MSEs, receive credit and other financial services from the formal banking sector, who regard the informal sector as risky and not commercially viable” [11]. Many of these micro business operators do not have bank accounts while those who do, find the bank accounts cumbersome to American Journal of Theoretical and Applied Statistics 2016; 5(3): 108-114 operate as they have to leave their businesses unattended in order to conduct transactions in a bank
The introduction of mobile phone money transfers is transforming the informal sector in Kenya
Summary
Background of Study: In Kenya, the micro and small enterprises are multifariously referred They largely fall under the popular informal sector called ‘Jua Kali’ which is a swahili term meaning entrepreneurs. According to statistics provided by the Central Bank of Kenya, there were 825 million mobile transactions up to November 2014, compared to 732 million transactions in 2013 [9] This increased accessibility to mobile phones have introduced changes in most sectors of the economy and the urban informal sector Jua Kali Business (MSEs) changing their business and operation environment, thereby creating an impact on Kenya’s fastest growing sector and employer [7]. It is worth noting that Proprietors and small businesses in Kenya benefited hugely from the mobile phone revolution in the introduction of MMT services as they are able to make savings and gain access to more customers and new services
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
