Technological Innovation as entrepreneurial Determinant affecting Savings Mobilization among Micro and Small Enterprises in Kenya

Abstract

The research study aimed at finding the effect of technological innovation on savings mobilization among MSEs in Trans Nzoia county Kenya. Studies from developed world have indicated that the use of technological innovations in savings mobilization improves performance of MSEs leading to better savings mobilized, also, MSEs with superior technological resource will have a competitive advantage leading to entrepreneurial growth of their MSEs and also enhances the efficiency of an enterprise and builds the confidence of entrepreneurs in discharging their responsibilities. The research used mixed research design to conduct the study among 339MSEs who are registered with KNCCI Trans Nzoia county. Stratified sampling was used to categorize MSEs into three strata’s namely service manufacturing and commerce or trade. Pilot study tested the instruments reliability and validity which met the threshold 0.70. Correlation among the technological innovation factors was found to be significant. The major findings of the study indicated technological innovation influences introduction of variety of new product and services offering to customers, drastically reduces the cost of savings mobilization and makes financial products and services appealing/attractive. The study concluded that financial institutions to consistently innovate new technologies of delivering their products and services The study also concludes that gender, level of education and number of dependants positively affects technological innovations which influences savings mobilization among MSEs. The study recommends that prior to the financial institutions introduction of technological innovations, they should create functional infrastructures to operate effectively.