Influence Of Mobile Banking Services On Growth Of Micro And Small Enterprises In Makueni Sub-county In Kenya

Abstract

The study focused on the influence of Mobile banking services on the growth of the MSEs in Makueni Sub- County. The descriptive research design was employed to conduct the study and targeted 2000 licensed MSEs in Makueni Sub- County. Consequently, a purposive sampling technique was used to obtain 200 micro and small entrepreneurs who utilize mobile banking, a 10% sample size of the entire population. The study used primary data obtained using survey questionnaires. Descriptive data analysis was then conducted using averages, counts, percentages and deviations. Inferential statistics were also used to present the causal influence between the variables. The findings further indicated that m-banking accessibility results in a significant and positive influence on growth of MSEs (β= 0.182, p=0.000). The findings also indicated that costs of m-banking services have a positive and significant influence on growth of MSEs (β=0.191, p=0.000). The findings confirmed that security of m-banking transactions has a positive and significant influence on growth of MSEs (β= 0.450, p=0.000). The findings indicated that efficiency of m-banking services has a positive and significant influence on growth of MSEs (β=0.330, p=0.039). Therefore, the study recommends an intensified campaign to sensitize the MSEs on the importance of mobile money transfer services owing to their flexibility and improved security as compared to carrying physical cash. This is evident especially in the current 21st century where technology has exploded to many developing countries. In the wake of the COVID 19 pandemic, the use of mobile money transactions is recommended to the MSEs since it has been shown to have a significant reduction influence on insecurity issues, cost of transactions and improve accessibility to financial services. It means that mobile money services help MSEs in Kenya achieves greater financial inclusivity and therefore, an assured and sustained growth. To the policy makers, the findings suggest that there is need to solidify and enforce strong digital policy that promotes cashless payment. This goes a long way to encourage the firms and small-scale entrepreneurs in the country to integrate financial developments in their businesses such as PayPal in websites, social media marketing, e-wallets, mobile banking etc. The policy can encourage MSEs to go regional and even global by utilizing the web-based platforms and acquiring markets across-borders.