Effects of Mobile Money Services On The Performance of Small and Medium Size Enterprises

Mobile Money Services and SMEs 1
COMENIUS UNIVERSITY BRATISLAVA (16)
FACULTY OF MANAGEMENT (16)
EFFECTS OF MOBILE MONEY SERVICES ON THE PERFORMANCE OF SMALL

AND MEDIUM SIZE ENTERPRISES (A RESEACH PROPOSAL) (16)
SUBTITLE (16)
Bachelor Thesis/Master Thesis/Rigorous Thesis/Dissertation Thesis (14b)
202x (11,5)
Author’s forename, surname, academic degrees (14)

COMENIUS UNIVERSITY BRATISLAVA (16)
FACULTY OF MANAGEMENT (16)
EFFECTS OF MOBILE MONEY SERVICES ON THE PERFORMANCE OF SMALL

AND MEDIUM SIZE ENTERPRISES (A RESEACH PROPOSAL) (16)
SUBTITLE (16)
Bachelor Thesis/Master Thesis/Rigorous Thesis/Dissertation Thesis (14b)
Study Program: Management/Business Management (11,5)
Field of Study: Economics and Management (11,5)
Training Workplace: Department of … (11,5)
Supervisor: Titles before Name, Forename, Surname, titles after Name (11,5)
Bratislava 202x (14)
Author’s forename, surname, academic degrees (14)

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Abstract
The emergence of mobile money services has seriously impacted the performance of
many SMEs. Since this started, there has been a rising growth in the number of businesses
utilizing the form of payment when it comes to financial performance. The service's accessibility
and affordability, particularly for those with low incomes, have played a significant role in its
rise. Mobile money services have, however, faced a number of difficulties, including a lack of
agents in rural areas to provide quick access to cash when needed, an increase in fraud cases, and
a lack of trust among customers who deposited money for savings purposes, among others. Users
of mobile money appear to be making every effort to overcome these difficulties. Nevertheless,
despite these difficulties, mobile money services have had an impact on small and medium-sized
businesses.
Keywords: Small Businesses, Mobile Money, Mobile Money Services, Performance, and
Medium Businesses.
Foreword
In underdeveloped nations, mobile money has shown to be a scalable way to deliver
financial services. Due to the recent development of mobile money services, households in poor
nations now have more access to remittances. Due to lower transaction costs than families
without mobile money, which are more likely to see a decline in consumption when faced with a
bad income shock, mobile money has a substantial impact on households' ability to distribute
risks. In order to determine the effect of mobile phone-based money transfer services on the
financial performance of small and medium-sized businesses, this study examines the effects of
these mobile money services. For instance, mobile banking, a service offered by mobile money,
has the ability to provide unbanked individuals with basic banking and electronic services.
However, there is a wealth of study on how m-money systems affect macroeconomic and
microeconomic results. Small and medium-sized businesses (SMEs) are important to the
economy. It is because, mobile money services can also be seen as a branchless banking
variation with the ability to supply financial services outside of traditional banks.
Dedication
I thank God Almighty for the gift of life and my family, friends, and colleagues for their
support and love in helping me complete this research project proposal.
Acknowledgment/Declaration
I thank Almighty God for granting me the stamina and health necessary to complete this
project proposal. I would also like to extend my sincere gratitude to the institution, my friends,
and my family for their support in making this project possible. I would especially like to express
my gratitude to my supervisor for his efforts and the advice and direction he provided me with
when creating the research proposal.
List Of Abbreviations and Symbols

SMEs- Small and Medium Enterprises
IT- Information Technology
MMSs- Mobile Money Services
GDP- Gross Domestic Product
MFS- Mobile Financial Services

Contents
Abstract..........................................................................................................................................................4
Foreword........................................................................................................................................................5
Dedication......................................................................................................................................................6
Acknowledgment/Declaration.......................................................................................................................7
List Of Abbreviations and Symbols...............................................................................................................8
Chapter One: Introduction...........................................................................................................................11
1.0 Introduction........................................................................................................................................11
1.1 Method of Quoting.............................................................................................................................12
1.1.1 Standards of ISO 690: 2010 (E)..................................................................................................12
1.2 Current State of Dealt Problem in Inland and Abroad.......................................................................13
13.1 Current State of Mobile Money Services.....................................................................................16
1.3.2 General overview of Small and Medium Business.....................................................................17
1.3.3 Theoretical and Empirical Framework for SMEs Use of or MMSs...........................................19
1.3.4 Contribution to Theories.............................................................................................................25
1.4 Extend of the Final Thesis.................................................................................................................27
Chapter Two: Aim of the Scholarly Work...................................................................................................28
2.0 Aim of the Scholarly Work................................................................................................................28
2.1 The research Objective and Questions...............................................................................................28
2.1.1 The Research Objectives.............................................................................................................28
2.1.2 The General Objective................................................................................................................28
2.1.3 The Specific Objectives..............................................................................................................29
2.1.4 Research Questions.....................................................................................................................29
2.2 The Scholarly Work Purpose, Significance and Limitations.............................................................29
2.2.1 Purpose of the Study...................................................................................................................29
2.2.2 Significance of the Study............................................................................................................30
2.2.3 Limitations of the Study..............................................................................................................31
Chapter Three: Methodology and Research Methods.................................................................................32
3.1 Introduction........................................................................................................................................32
3.1 Characteristics of the Study...............................................................................................................32
3.1.1 Research Design..........................................................................................................................32
3.1.2 Target Population........................................................................................................................32
3.1.3 Sample Design............................................................................................................................33
3.2 Working Methods..............................................................................................................................33
3.3 Methods of Obtaining Data and Sources Used..................................................................................33
3.3.1 Questionaries...............................................................................................................................34
3.3.2 Interview and Focus Groups.......................................................................................................34
3.4 Used Methods of Evaluation and Interpretation of Results...............................................................35

3.4.1 Data Evaluation...........................................................................................................................35
3.4.2 Interpretation of Results..............................................................................................................35
3.4.3 Data Reliability and Variability..................................................................................................36
3.5 Statistical Methods.............................................................................................................................36
Reference List..........................................................................................................................................38
Chapter One: Introduction

1.0 Introduction
Mobile money, also known as mobile payment, mobile money transfers, and mobile
wallet, broadly refers to services that may be accessed and used through a mobile device, such as
a credit or debit card, mobile phone, or another portable device. It is further defined as the point
at which telecommunications and banking services converge (World Bank Group, 2018). It
involves a wide range of parties, including financial service providers and mobile phone
operators. Electronic money accounts that may be accessed through a mobile phone are what are
referred to as mobile money services (Skogqvist & Ranjula, 2019). People with and without bank
accounts can send and receive money using mobile phones at home and abroad thanks to mobile
money services, which are safe and practical. According to World Bank (2016), with the
advancement in technology, more individuals and businesses ought to use using mobile money
services as they are fast and convenient compared to traditional modes of payment. Through the
development of payment methods, technology entrepreneurship, and innovation program,
approximately three-quarters of the world's population now has access to a mobile phone (World
Bank, 2016). The mobile communications story is moving to a new level that is less about the
phone than it is about how it is used. Pre-paid and post-paid mobile subscriptions are now used
worldwide in excess of 6 billion times more than they were in 2000, with approximately 5 billion
of those subscriptions being in developing nations. Ownership of multiple subscriptions is
becoming more and more prevalent, indicating that they will soon outnumber people.
According to Islam & Muzi (2020), Business investment has surged as a result of the
broad adoption of digital technology like mobile money. For instance, capital investments by
women-owned businesses in the area are much lower than those made by their male
counterparts. This makes it simple to investigate whether the use of mobile money by women-
owned businesses results in higher investment. This is so that they may manage all of their
transactions and payments with the highest level of ease, speed, and flexibility (Donovan, 2012;
Gundaniya, 2022). Due to the great client demand and fierce rivalry, it is incredibly challenging
for firms to even continue operating. Mobile money has become the ideal solution for banks and
numerous FinTech companies to address the aforementioned problems. It has lessened the need
for cash and enabled users to access financial services with the greatest ease. Additionally, it has
put pressure on the banks to guarantee that their consumers have a seamless transactional
experience while using their mobile banking apps (Gundaniya, 2022). Many financial services
are now available to users by simply sitting at home and pressing a few buttons. Mobile money is
a significant part of the future of banking due to its simplicity and convenience.
Back to the convenience that mobile money brings, it also has effects that are either
positive or negative in nature. Many people and households in developing nations, where
financial inclusion is very low, rely on informal savings methods like "saving under a mattress,"
saving in jewelry or livestock or saving in groups of friends or relatives using merry-go-rounds,
where participants come together and contribute a set amount of money in a rotating system
(Steinert et al. 2018). However, by giving households and individuals the ability to save, spend,
and transfer money through short messaging service (SMS) without having official bank
accounts, the adoption of mobile financial services (MFS), also known as mobile money, has
revolutionized and strengthened the financial infrastructure and services (Hove & Dubus, 2019).
Hence, it is good to have a background overview of how mobile money services have impacted
the different small and medium businesses worldwide.
1.1 Method of Quoting

For this research paper the chosen method of quoting is Harvard citation method. This
citation method makes use of an author/date style when intext citations are made. In the body of
the assignment, sources are mentioned by listing the name(s) of the author(s) and the date of
publication. The list of references or bibliography at the conclusion contains all extra information
about the work. Unlike other citation formats, Harvard Style doesn't have a single, unchangeable
version. As a result, elements like punctuation, capitalization, abbreviations, and the usage of
italics may vary.
Additionally, in this research study, ethical quoting will be utilized. This will determine
how ethical standards are met in regards to other people's ideas and results being used in other
documents and books. As a result, the method of quotation adheres to accepted norms and is in
line with practice in the relevant scientific sector. The entire thesis must have the same quoting
strategy. With this all the relevant aspects will be adhered to as per the ISO 690.
1.1.1 Standards of ISO 690: 2010 (E)

The standards of ISO 690 are guidelines for the creation of bibliographic references are
provided. It also provides instructions for writing citations in Latin scripts in writings that are not
primarily bibliographical themselves. This is so that all types of information resources, including
but not limited to monographs, serials, contributions, patents, cartographic materials, and
electronic information resources, can be cited according to the criteria for bibliographic
references (ISO 690:2010, 2021). It also provides instructions for writing citations in Latin
scripts in writings that are not primarily bibliographical themselves. Thus, it is not applicable to
citations that may be parsed by software. Legal citations do not fall under this rule either because
they follow different rules. In the case of this study the name and date system will be utilized.
1.2 Current State of Dealt Problem in Inland and Abroad

The issue of the effects mobile money services has on the small and medium size
enterprise is gaining a lot of popularity. With this is important to under that it has led to various
research works being conducted to better get and understand how the influence of MMSs
(mobile money services) is reflected on the overall performance of SMEs. To build on this
research primary and secondary source of information will be utilized. This will include journal
articles, books, and other works that have been published in the subject area.
Since its launch in 2007, the emerging mobile money service has experienced a
resounding uptake in SMEs. The service's accessibility and affordability, even for people with
modest incomes, are credited with its success. Most banked and unbanked people use it as a
deposit account because they can keep track of account balances on their mobile devices. The
banked can now escape lengthy bank lines thanks to it (Rice, 2007). Technology advancement is
seen as user-friendly, dependable, and efficient, with the potential to expand financial services to
individuals who are unbanked or choose less expensive financial services. Because of this, the
vast majority of Kenya's microbusiness owners use it for daily tasks, including paying suppliers
for goods and services, paying bills, transferring money to friends and family, withdrawing cash,
and topping off airtime accounts. They can effortlessly manage their accounts and keep track of
their balances. 'Firms that employ ICT expand quicker, invest more, and are more productive and
lucrative than those that do not,' the World Bank (2016) stated. There are, however, only a few
studies on the use of digital technology to boost SMEs' performance.
Various works of literature have given a lot of attention to technology and how it can be
used effectively in organizations, so businesses have kept investing heavily in mobile phone
services in the hopes of seeing favorable returns. There have been several published studies on
the use of mobile phone services in business operations. The SME sector has benefited greatly
from mobile money. The majority of traders use it instead of the traditional banking system for
their daily transactions. It is clear that everyone who participated in this survey had a thorough
understanding of how mobile money services worked. The use of mobile money services
increases sales. It is as result of efficiency and dependability that are more important to the use of
mobile money and the expansion of SMEs. It is important to note that the majority of
respondents expressed skepticism about the service's pricing and convenience due to issues with
its functionality. The respondents were very concerned about delays, although few of them had
actually encountered them. Additionally, there is a significant market opportunity for mobile
money because many players in the SME sector do not use the service for savings, to get loans,
or to have bank accounts. It is clear from the results that users of mobile money are unfamiliar
with mobile banking operations related to loan applications and repayment and prefer traditional
banking to mobile banking when it comes to loans and advances.
According to Talom & Tengeh (2019), small and medium-sized businesses (SMEs) in
many developing nations have discovered a viable alternative to mobile money services (MMS),
which are frequently financially excluded by the traditional banking system. Mobile money
(MM) has largely not been used or adopted by SMEs in developing countries, despite its
potential to promote inclusive growth. One of the reasons for this is the dearth of data supporting
the impact of MM on financial performance. The turnover of the SMEs was attributable to
mobile money payment and reception services.
The emergence of the mobile money phenomenon could not have been more fortunate, as
it has become abundantly clear that SMEs must streamline their processes, save operational
costs, and minimize needless loss of time in order to survive and develop. The solution enables
SMEs to pay suppliers directly through mobile phones and collect payments directly from
consumers without having to leave or shut down their offices for extended periods of time. As a
result, it offers a practical way for individuals or SMEs without access to bank accounts to easily
conduct financial transactions, have quick access to money when they need it, and do so without
paying additional fees like transportation and opportunity costs. As a result, their businesses
perform much better.
The variables that are currently known from a study done by other academics include
improved accessibility, affordability, convenience, security, contentment, and support. Data
shown and discussed in part prior to these ones have demonstrated increased accessibility. Given
the critical mass that mobile money services have reached, it seems likely that users are enticing
non-users to join the system. Any alternative is thought to have a lower transaction cost. The
most obvious direct advantages of mobile money are increased convenience, increased speed,
and decreased cost of financial transfers (Nyaga, 2013). This is clear when compared to more
conventional ways of sending and receiving money, like via public transportation, friends, or
Posta Pay Services. Compared to mobile money systems, which are typically less expensive than
these alternatives and provide both the sender and the receiver with rapid transaction
information, all of the old techniques mentioned above have significantly higher dangers.
Performance is assessed in two ways: as means to obtain results and as end results. The
capacity to recognize the results of organizational efforts is called performance. Performance
may be both monetary and nonmonetary. Financial performance is a purely arbitrary indicator of
how effectively a company can utilize the resources generated through its basic business
operations and subsequent revenue production (Tengeh & Gahapa Talom, 2020). Financial
performance is frequently employed as a broad indicator of a company's long-term financial
health. It can be used to contrast businesses in the same sector. Accounting's main performance
indicators, such as return on assets (ROA), return on equity (ROE), and net interest margin
(NIM), are used to gauge a company's financial performance (Ngaruiya, 2014). It measures the
revenue relative to the total assets. It gauges an institution's management's capacity to make a
profit from all of its resources, to enhance speed and safety.
Money transfers may now be done quickly and easily thanks to the speed and security of
mobile money services. This has stimulated the expansion of several economic activities,
particularly in rural regions, by encouraging local consumption through increased money
circulation. It's possible that lower costs and improved system efficiency and dependability have
made it easier for more individuals to transmit money to remote areas, boosting the local
economy there (Mohamed & Nor, 2021). For instance, a farmer might be able to get money to
buy seeds without making needless trips during planting season. Current data, however, is
insufficient to substantiate such flow.
13.1 Current State of Mobile Money Services

Recent technological advancements have altered how financial organizations operate and
carry out their business. It has influenced the development of mobile banking and online
banking. Financial organizations now offer customers convenient access to banking services
thanks to mobile banking. The use of mobile banking by financial institutions is a result of their
aim to cut operational expenses. With this, the recent financial innovation has focused heavily on
mobile banking, which significantly increases financial inclusion. The rate of financial inclusion
is very high in developing nations. Newman et al. (2012) estimate that official access to bank
accounts has not been made by half of all adults worldwide. This number rises among people in
emerging nations with low to intermediate incomes. But among people without official bank
accounts, more than a billion have smartphones. Because of this, there is a chance to reach the
parts of the population that are typically underserved.
Mobile money services provide simple and safe ways for both banked and unbanked
individuals to send and receive money using mobile phones both domestically and
internationally at any time. It has features including mobile banking, airtime transfers, mobile
wallets, and mobile transfers. The user of a mobile wallet can receive, store, transmit, or make
payments at an individual’s convenience (Demirguc-Kunt & Klapper, 2012). Similar to airtime
transfer, which allows users to buy and send airtime to other users on the same network, money
transfer options allow users to send money from their mobile money accounts to other
subscribers at any moment and geographical location.
Prepaid mobile phone services that catered to low-income consumers who preferred more
anonymity than post-paid phone users saw the beginning of the use of mobile phones for
financial transactions. Contrary to post-paid mobile phone services, prepaid customers could just
stroll into a store, buy airtime in small denominations, enter the information, and make the call
they wanted. Since the bulk of mobile phone users had little to no connection with banks, this
group of users quickly grew large enough to be a target for micro-payment capabilities. Wishart
et al. (2006) described the main driver towards a cashless transaction environment that presents
benefits such as reduction of fraud, reduction of untraceable criminal activities, reduction of cash
handling costs, and less reliance on cash-in-hand when a need arose as the reason this segment
came into focus and the need to develop financial services that target them.
The target market has been seen to be responding quite well to mobile money services,
especially in their applicability to small and medium businesses. For instance, the expansion of
M-pesa as Kenya's largest mobile money service has been a spectacular success story that has
piqued the curiosity of researchers in a variety of academic sectors (Jack et al., 2013). M-pesa is
a text message-based payment system that enables users to send, receive, deposit, withdraw, and
save money in addition to using PIN-secured SMS text messages to pay for services and
commodities (Jack & Suri, 2014). Based on a decade's worth of empirical research, it is possible
that mobile financial services have improved financial inclusion, raised household savings,
lowered the cost of receiving and sending money over long distances, lowered household risk-
sharing strategies, and facilitated easier access to unsecured credit. Mobile financial services
have increased employment, decreased poverty, sparked investment, and generated economic
growth on a macroeconomic level.
1.3.2 General overview of Small and Medium Business

The number of employees is the characteristic that is most frequently utilized; small
businesses are typically described as organizations with less than 100 people, while midsize
enterprises are those with 100 to 999 employees. They can gain advantages like flexibility in
areas of innovation and technology thanks to this. Small and midsize businesses are responsible
for many technological advancements and processes (SMEs). Large businesses are less adaptable
than SMEs since they frequently concentrate on enhancing existing items in order to produce
larger quantities and gain general benefits from the dimensional economy (CFI Team, 2020).
SMEs concentrate on developing new goods or services in order to succeed; as a result, they are
able to adjust to changing market demands more quickly. SMEs are essential in forming a
nation's economy by enhancing the saving attributes of business owners (Skogqvist & Ranjula,
2019). They can be viewed as a hugely appealing and inventive system. The sector is regarded as
a topic of strategic relevance in an economy because of the positive social and economic benefits
of SMEs.
Small and medium-sized businesses (SMEs) are extremely important to most economies,
especially those in emerging nations. SMEs make up the majority of enterprises globally and
play a significant role in employment creation and the expansion of the global economy. They
account for more than 50% of all jobs globally and roughly 90% of all enterprises. In rising
economies, the share of formal SMEs in GDP can reach 40%. When informal SMEs are taken
into account, these figures are substantially higher. By 2030, 600 million jobs will be required to
accommodate the expanding global workforce, according to our projections (The World Bank,
2022). As a result, many governments all over the world place a high focus on SME
development. In emerging markets, SMEs account for seven out of every ten formal jobs created.
The second most frequently stated barrier to SMEs' expansion in emerging markets and
developing nations, access to finance, is a major impediment to SME growth.
Some anticipate that using mobile money will greatly assist small and medium-sized
businesses (SMEs). SMEs are frequently observed processing a significant volume of payments
and can have a surprisingly high volume of cash flowing through them. However, traditional
banks don't always provide the transactional and payment services they require. As a larger firm
might, they do not always find it convenient or cost-effective to embrace a full-featured set of
banking services (Kendall et al., 2012). In markets where it is available, anecdotal data suggests
that many small enterprises use mobile money services extensively. Hughes and Lonie (2007)
stated that services, including bill payment, salary payment, and local and international
remittances, may be integrated into mobile money. Initially, mobile money services were
marketed as money transfer services. All of these services had already been accomplished and
surpassed when the literature was evaluated in 2012. Financial analysts see these extra features
and services as giving the unbanked access to banking services. It is now possible to pay for
power and water, digital television, parking fees, and many more services using the pay bill
capabilities offered by mobile money providers. Many consumers, especially those in
metropolitan areas, are becoming more interested in this trend. Mobile money is primarily used
by wealthier, metropolitan clients to pay bills (Nyaga, 2013). The amount of mobile money
utilized for other consumer transactions, such as market purchases, cannot be determined by
available data. Mobile money offers small businesses convenience, support, cost savings,
satisfaction, and security.
Hence, for SMEs, the security and accessibility of money are of utmost importance. A
bank or other financial institution's mobile banking service enables its customers to carry out
financial transactions remotely using a mobile phone. It has primarily been aided by the
competition from the Mpesa services which are offered by Safaricom, which is in the
telecommunications sector. Typically, mobile banking is accessible around-the-clock (Nyaga,
2013). The common mobile banking transactions include checking account balances and a
summary of recent activities, transferring money between clients' accounts, paying bills
electronically, and making non-cash withdrawals and deposits. It does not deal with cash
transactions, which has become more efficient and effective.
Mobile phones have traditionally been used for voice communication, but they have
developed into multipurpose devices with value-added services like mobile money transfers,
Internet access, and data services that improve how small and medium-sized businesses (SMEs)
run their operations. In addition to being more affordable and portable than PCs, mobile phones
are easier to adopt. Due to the majority of small business owners had to travel or utilize public
transportation to transmit and exchange paperwork, obtain banking services, or even conduct
business transactions (Mutinda, 2014). This is no longer the case because people can now email
papers, utilize mobile money transfer services to pay for goods and services, and, if they have a
phone with advanced technology, perform the necessary duties whenever and wherever they are.
Hence, prepaid mobile phone services that catered to low-income consumers who preferred more
anonymity than post-paid phone users saw the beginning of the use of mobile phones for
financial transactions. Contrary to post-paid mobile phone services, prepaid customers could just
stroll into a store, buy airtime in small denominations, enter the information, and make the call
they wanted. Since the bulk of mobile phone users had little to no connection with banks, this
group of users quickly grew large enough to be a target for micro-payment capabilities. Wishart
et al. (2006), as part of the push towards a cashless transaction environment that offers benefits
including fewer fraud, a decrease in untraceable illegal operations, minimum cash handling
costs, and a reduction in the requirement for cash on hand when a need arose.
1.3.3 Theoretical and Empirical Framework for SMEs Use of or MMSs

The literature from empirical and theoretical perspectives is reviewed in this section. The
empirical and theoretical reviews are included in the section as research gaps. A literature review
contributes to a larger conversation that is still being had about the subject matter, filling in any
gaps and expanding the breadth of recent research. It also offers the rationale for highlighting the
advantages of the research study and the comparison point for the findings. Additionally, this
section explores how m-banking usage impacts SMEs' performance. This has been made
possible through the use of mobile money and a company's decision to buy fixed assets was
proven to be positively correlated (Mugambe, 2017). In light of their significance to the economy
and the numerous complex elements that influence them, SMEs' growth and development have
long been the subject of research. The availability of financing for businesses is promoted by
mobile money, according to earlier research. One of the main factors influencing the expansion
of the firm is the availability and accessibility of financial resources (Mohamed & Nor, 2021).
Numerous research on the relationship between finance and business growth discovered that
access to financial resources was a limiting factor in business expansion. This association
between mobile phone financial services and lower transaction costs, greater liquidity, and
improved creditworthiness is explained. The results are mostly the result of small and medium-
sized businesses (SMEs).
Hence by the by the end of this study, it will be clear that mobile phone usage in both
developed and developing nations has increased significantly. This platform was created to
improve our methods of using conventional resources. The goal of mobile banking is to increase
access to financial services through proven universal technology (Riley, 2018). M-banking also
turned into one of the first commercial uses for mobile commerce. The word "M-commerce"
gained popular due to the mobile application's rapidly expanding use. According to Asongu &
Boateng (2018), as seen in the past ten years, the liberalisation of the information and
communication technology (ICT) sector has significantly changed the macroeconomic and
microeconomic environments in developing countries by, among other things, supplying
technical frameworks, interactive networks, and services to underserved industries like finance
and health. With this it has brough about the need to address and look at the different theoretical
reviews which are available in regard to the performance of small and medium size enterprises.
1.3.2.1 Theoretical Review

The theories that inform this study are embraced and discussed in this section. The
guiding philosophies of innovation, like mobile banking, are included in this section.
Additionally, the section specifically examines how innovation theory spreads to expound on
how an idea or a product develops traction, spreads, and is eventually adopted by a particular
community or social system over time. The acceptance theory of technology will be discussed in
this section's final section. This particular episode discusses the simplicity and value of seeing
innovations from the perspective of innovation acceptance behavior, and how the SMEs have
integrated this into their daily operations as they try to improve on their performance.
1.3.2.1.1 Unified Theory of Acceptance and Use of Technology (UTAUT)

The development of information and communication technology (ICT) has
fundamentally altered how businesses operate. The use of technology at work has transformed
intra- and interorganizational communication and expedited company procedures to ensure
benefits including increased productivity, employee welfare, and customer happiness (Marikyan
& Papagiannidis, 2021). According to the UTAUT theoretical model, behavioral intention
governs how technology is actually used. The direct impact of four main constructs, including
performance expectancy, effort expectancy, social influence, and facilitating factors, determines
the anticipated likelihood of adopting the technology (Venkatesh et al., 2003). The influence of
predictors is tempered by factors such as age, gender, experience, and willingness to use.
UTAUT has added a lot to the body of knowledge. The approach compares popular
technology acceptance ideas, which frequently offer opposing or incomplete viewpoints on the
topic, to provide empirical insight into technology acceptance. Compared to other models that
look at technology adoption. It shows that proposed components account for 70% of the variance
in use intention. This means that they have a better ability to predict future behaviour. The
intricacy of the technological adoption process, which depends on an individual's age, gender,
and experience, is demonstrated by the interactive effect of several constructs with personal and
demographic characteristics. Through this theory, it enables the measurement of technological
adoption, technology use, and the evolution of mobile money services over time (Venkatesh et
al., 2007). It has an impact on the "The degree to which an individual believes that employing
the system will allow him or her to obtain advances in job performance" is how performance
expectancy is defined.
According to Mugambe (2017), performance expectancy is defined as the likelihood that

using technology will benefit users; Effort expectancy is the likelihood that using technology
will be easy for users; Social influence is the likelihood that using technology is perceived as
being important by the user; and Facilitating conditions is the user's perception of the resources
and support systems that are available to use the technology. The pleasure experienced from
using technology is referred to in the extended version as hedonic motivation. Price value refers
to the price and pricing structure associated with using technology. Habit refers to the degree to
which people tend to perform behaviours automatically as a result of learning. The actual usage
of technology is determined by the model's supporting conditions, habits, and behavioural

intentions, whereas the other dimensions have an influence on behavioural intentions.
1.3.2.1.2 Non-Back Led Theory

According to this view, the bank just serves as a custodian of excess funds while other
service providers, like telecom, handle all transactions. Customers in this situation do not interact
with banks; instead, they conduct business using agents, prepaid cards, or mobile devices.
Customers convert their cash into mobile money that is kept in a digital account that isn't
connected to a certain bank (Muthee Gichuki & Jagongo, 2017). The regulatory framework for
non-bank operators may not place significant value on knowing their consumer or their
identification, making this hypothesis dangerous. This could give room for the financing of
terrorists and money laundering.
Additionally, the theory continues state that customers do not interact with banks or keep
bank accounts (Lyman et al., 2006). They collaborate with a non-bank company, which could be
a retail agent, a prepaid card issuer, or a mobile network operator. Customers trade their cash for
electronic money held in a virtual electronic money account on the non-server bank's that isn't
connected to a personal bank account, according to the document's more details. This
arrangement poses a greater risk because the regulatory framework under which these non-banks
operate may not place a high priority on problems involving consumer identity. Furthermore,
according to Kapoor (2010), non-banks are not sufficiently regulated in the areas of open record-
keeping and documentation, which is a requirement for a secure financial system.
1.3.2.1.3 Technology Acceptance Model (TAM)

TAM is a system of information with a hypothesis of higher influence to create a usable
system of information for its potential users. Before using the technology, the system monitors
any impending dangers. Before introducing any new technology to its consumers, TAM offered
certain recommendations. Some of these variables include the element of perceived usefulness
(PU), which measures how much a person believes a given technology would enhance his ability
to execute his job if he employed it (Nimfa et al., 2021). The idea that using a particular
technology would be simple and cost-free is known as the perceived ease-of-use (PEOU), and it
is a perception. Construction is born from the TAM, PU, and PEOU's fundamental sharpness The
design is a reflection of its impact on the development of user-acceptance technologies. It
highlights TAM as a simple, foresighted, and reliable method important for examining how
people embrace information technology. This theory echoes the effects of m-banking adoption
on SMEs performance.
1.3.2.1.4 The Institutional Theory

An institutional theory is a good starting point for investigating the boundaries between
industries or social groups that have influenced SMEs in different ways to sustainable growth.
Explaining why sustainable endeavors are important is not primarily a voluntary task, as the
performance of businesses is challenged by a number of factors, such as governmental
regulations and competitive pressures. As a result, sustainable innovation and internal or external
firm-centric factors are the main emphasis of institutional theory. Opportunities with normative,
coercive, and mimetic drivers to influence small and medium-sized enterprises to shape
environmental, social, or economic decision-making and to legitimise the vision of sustainable
business practises are presented by the institutional theory of sustainable growth for small and
medium-sized enterprises (Caldera et al., 2019). Sustainable business practises promise
profitability, resilience, and beneficial social and environmental benefits, and are an aim for an
increasing share of small and medium-sized firms worldwide
SMEs business owners are responding to institutional limitations in a variety of

imaginative ways, including by implementing novel business ideas, strengthening their resolve
and courage, joining organizations, attempting to give back to the community, and cooperating
with the authorities. The establishment of sustainable growth policies and practises, as well as
the identification of quality plans or technology orientation, have all made extensive use of
institutional theory. When acceptability served as the impetus for technology orientation practise,
institutional theory offers greater illumination (Eijdenberg et al., 2019). The strengths of the
institutional structure are influenced by three different types of competitive pressures: normative
pressures, imitation pressures, and coercive pressures. Therefore, the measures taken by
organisations to advance their programmes for sustainable, social, and environmental growth,
through which businesses gain appropriateness and perceived value (are fueled by all three of
these criteria).
1.3.2.1.5 Resource based view theory

The origins of resource-based valuation theory can be traced to that time period. The
resource would produce more outcomes than any other industrial structure if it was deployed and
used effectively. A corporation should be regarded from the perspective of its most important
resource. more competency," and the emphasis was on a variety of crucial resources, which were
referred to as the firm capability and competitive advantage (Kraaijenbrink et al., 2010). Other
academics have referred to it as a unique competency while highlighting the strategic use of
resources and competencies. The resource-based view theory is a development of the firm
growth theory. This thesis explained how the firm's resource performance gave it a lasting
competitive advantage, which later reflects on the performance of the SMEs.
According to Grewal et al (2011) the resource-based view hypothesis, there are

opportunities based on resource uniqueness that could result in competitive advantages. From a
management perspective, the study's setting and tactics that emphasise sustainable franchising
development were better understood as a result of the research. A resource-based view is
undoubtedly crucial to take into account in addition to business owners who are on their growth
path (Grewal et al., 2011). The evaluation of all available resources enables businesses to
successfully accomplish their goals. Managers can overcome growth obstacles or reduce changes
in course and growth challenges by choosing an effective growth plan.
1.3.2.1.6 Dynamic Capabilities Theory

Strategic management research has given a lot of attention to dynamic capabilities.
empowered via the efforts introduced the dynamic capabilities hypothesis. It is noted that while
dynamic capabilities were about doing the right thing in terms of new product (and system)
growth, unique management orchestration process, change-oriented organisational culture, and
accurate assessment of business climate and technology trends (Laaksonen & Peltoniemi, 2018).
At the right time, dynamic capabilities were mostly about businesses doing the right thing.
Strong, dynamic capacities are therefore possessed by a select few, not by the majority. In
particular during times of change and uncertainty, dynamic capabilities and strategic
management look at how the company might go beyond sustainable competitive advantages. A
growing discussion has resulted from persistent discrepancies in business commitments to
sustainability (Rashidirad & Salimian, 2020). Fortunately, dynamic capabilities do not simply
appear out of thin air; rather, they are frequently a result of exposure to and experience inside an
organisation. A company with strong dynamic skills could in fact maintain its lead with quick
innovation and distinctive business models.
1.3.2.1.7 The Innovation Diffusion Theory

Everett M. Rogers introduced his Innovation Diffusion Theory (IDT) in 1962. It explains
and describes the process by which new inventions are used and succeed. An innovation, is any
concept, thing, or behaviour that is thought to be novel, whereas diffusion of innovation is the
process by which the innovation is disseminated over time using a variety of media (Wani & Ali,
2015). Despite being beneficial, not every innovation is adopted, and takes place over a period of
time as it brings benefits to the business. Some of the benefits and characteristics include;
relative advantage, compatibility, complexity, trainability, and observability, that influence the
rate of utilisation.
1.3.2.1.8 Task-Technology-fit Theory

According to this theory, an information system's effectiveness is determined by
comparing the task's fit with available technology, and success is thus correlated with individual
performance. According to the notion, performance will improve if technological functionalities,
task specifications, and individual skills are better matched. According to the notion, a
connection between information technology and business tasks is essential for understanding and
forecasting the effectiveness of information systems (Spies et al., 2020). Only when the
technology is used and the tasks it supports are a good fit with individual performance can the
information system have a beneficial influence. Furthermore, it is asserted that task-technology
fit impacts how well information technology is used and that users can accurately assess task-
technology fit.
1.3.4 Contribution to Theories

The fundamental addition to theories in this work is that all theories are creative in
supporting the discovery of variables that are either directly or indirectly associated to SMEs and
sustainable small and medium firm growth. Therefore, businesses actively use, grow, expand,
and reconfigure operations to build and retain critical dynamic capacities, which is a key aspect
in the applicability of the idea. In a related view, the ability to dissect the firm's perception is
precisely how SMEs may keep redesigning their resource-based and developing new skills,
which is a crucial element in all theories (Nolan & Garavan, 2016). SMEs create and promote a
range of different competencies in addition to embracing creative techniques to ensure
sustainable growth in a cutthroat environment. Therefore, this study has significantly added to
the experience, knowledge, and theoretical foundation of the literature on sustainable growth of
small and medium firms.
1.3.2.2 Empirical Review

Research conducted by Higgins et al (2012), examined how SMEs in Kenya used mobile
devices. In total, 865 SME enterprises in urban and semi-urban locations were studied by the
three. They demonstrated that any activity or transaction carried out by the owners of SMEs
using mobile money is always done so in substantial amounts, such as when paying for supplies,
bills, and salaries, among other purposes. According to the findings, only 861 (99.5%) of the 865
SME owners used mobile money services for both company and personal efforts, with 67%
using them only for business. The fundamental flaws in the systematic evaluation of mobile
money's effects, particularly on SMEs, exist. Even if recent studies indicate that mobile phone
use and coverage have a favourable impact on risk reduction, market improvements, business
coordination, and the labour market. This has been facilitated by the ability of technology to
influence numerous company activities in a positively manner (Islam et al., 2018). For micro,
small, and medium-sized businesses, the rising use of mobile devices in developing nations and
the potential of the mobile platform to address business difficulties are very exciting. Different
facets of life in the developing countries have been affected by the mobile phone revolution.
The majority of research focus on how commercial banks' performance is impacted by

electronic banking. Numerous research found a connection between bank performance and
electronic banking to be favourable. A number of those research found that using electronic
banking had a short-term negative impact on the performance of mobile banking services but a
long-term favourable impact. According to a number of studies, using electronic banking has a
negative impact on the performance of commercial banks but a good impact on SMEs. For
instance, the accessibility of financial services in commercial banks was a factor in how
electronic banking affected financial services in Ghana (Asare & Sakoe, 2015). This study found
that electronic banking improves financial services accessibility in Ghana and allows banks to
cut costs while providing banking services more quickly, effectively, and with fewer employees.
The introduction of electronic banking services will enhance the delivery of financial services,
but there were knowledge and security concerns that raised questions about its use. As a result,
there aren't many research on electronic banking and the accessibility of financial services. The
majority of studies on electronic banking have focused on measuring performance as the
dependent variable, ignoring the financial services component, which is crucial and significantly
boosts the performance of SMEs.
1.4 Extend of the Final Thesis

The study will major on small and medium size businesses which are using mobile
money services in their operations. It will use scientific methods to reach its conclusion, and the
study's main focus is on the contribution of mobile money services to SMEs' performance. Since
small businesses are the ones that dominate in terms of commercial operations, the study will be
interested in them.
Chapter Two: Aim of the Scholarly Work

2.0 Aim of the Scholarly Work
This scholarly work is intended to be used in support of undertaking in-depth study, into
the influence of mobile money service on small and medium sized enterprise. It will be
instrumental in answer various research question which will be identified when it comes to
understanding the topic at hand. By doing this, it will contribute to offering quality control on
study findings that are widely disseminated. Peer review is a technique used by reputable
scholarly journals to guarantee that the research is methodologically sound and follows accepted
scientific practices. Additionally, it will ensure that knowledge will always be accessible in the
face of technological advancement. When all information was housed in books, ensuring its
accessibility was not a tough issue because redundant copies could be placed in numerous
locations to accomplish the goal. The aims are better explained in the research objective,
research questions, the purpose, the significance and the limitations of the study.
2.1 The research Objective and Questions

2.1.1 The Research Objectives
Financial firms now have to adopt mobile banking due to the quick advancement of
technology. There hasn't been a lot of academic research on how mobile banking affects SMEs'
financial health. The connection between mobile and the banks' financial success in enhancing
mobile money services. According to his research, there is just a tenuous connection between
financial performance and mobile banking. According to Merritt (2011), the study on mobile
banking and financial institutions was that using Mpesa boosts the profitability of having a bank
account. The study thus aims to close a knowledge gap in the research literature by determining
the impact of mobile banking on the financial performance of SMEs. Therefore, it might be
claimed that mobile money is a more convenient option than cash for the majority of purchases
(Aron, 2018). Mobile money offers a solution that makes the service transparent by enabling the
sender and receiver to see details about each transaction. Transaction data is quite reliable thanks
to this service's steady performance, and most issues are caused by user input mistakes.
2.1.2 The General Objective

This study's goal is to ascertain the impact of mobile phone-based money transfer
services on the financial performance of small and medium-sized businesses.
2.1.3 The Specific Objectives

To achieve the desired outcome will require the use of specific objectives. The objectives
to be addressed in this study include the;
1. To find out whether SMEs are currently aware of and using different mobile money
services.
2. To find out if the use of mobile money services affected SMEs' ability to grow through
higher sales, savings, and loan accessibility.
3. To determine whether the accessibility, affordability, and convenience of mobile money
services contributed to an improvement in SMEs' performance.
4. To determine whether SMEs believe mobile money services to be dependable and
efficient.
2.1.4 Research Questions

1. Which mobile money service categories are SMEs now aware of and using for
commercial transactions?
2. What effects have mobile money services had on small business sales, savings, and loan
availability?
3. How has the accessibility, affordability, and convenience of mobile money services
improved the performance of SMEs?
4. How reliable and efficiently do SMEs in Naivasha town find the mobile money services
to be in supporting their commercial transactions?
2.2 The Scholarly Work Purpose, Significance and Limitations

2.2.1 Purpose of the Study
The study's primary goal was to inform small business owners, bank clients, the
government, and mobile phone service providers about the connection between mobile phone-
based services and the financial success of SMEs. This topic is pertinent to students enrolled in
business administration programs at higher education levels who need to learn how different
financing models and financial services affect businesses because SMEs are the primary source
of employment, economic growth, and activities that have an impact on a manager's day-to-day
duties in various countries.
The results of this study will motivate the government to keep promoting broadband
competition, liberalizing network services, and liberalizing network infrastructure. The results of
this study will also assist the government in supplementing private investment with public
financial assistance to increase coverage for underserved groups and rural locations, provided
that it does not interfere with private initiatives or discourage competition. The findings of this
study will provide useful data to mobile phone firms that could enhance or develop current
offerings with a particular focus on SMEs. The owners or operators of SMEs would gain from
knowing about the financial services offered by mobile money and how they may use them to
enhance their companies.
Finally, the information will enable the operators to tailor their coverage to the needs of
small businesses, thereby sustaining and accelerating their growth. They will also make mobile
money transfers more accessible to small and medium-sized business owners and encourage
them to use the service more frequently.
2.2.2 Significance of the Study

This study is significant as it clearly shows that small and medium-sized businesses
heavily rely on the mobile money service to make purchases from suppliers, pay bills, and store
money. Since mobile money services provide safer and more affordable money transfers, as well
as the opportunity to track transactions and verify payment references, businesses choose to use
them. In light of their significance to the economy and the numerous complex elements that
influence them, SMEs' growth and development have long been the subject of research. Previous
research has shown that mobile money facilitates a company's access to financing. One of the
main factors influencing the expansion of the firm is the availability and accessibility of financial
resources. Investigating mobile money service usage patterns, transaction types, and their impact
on the SME market are crucial.
In order to improve business performance in areas like improved sales, increased usage of
mobile money services to buy business products and supplies, and accessibility to savings and
loans, it is crucial to concentrate on inexpensive financial inclusion solutions. Additionally, the
study will place varying values on the various field stakeholders.
1. The study will assist in influencing policy development for decision-makers and
organizations like the central bank, particularly with regard to regulating mobile banking
services.
2. The study's findings contribute information that could assist policymakers in better
regulating mobile banking and identifying elements that promote economic growth.
3. By extending the body of knowledge in the field of mobile banking and financial
performance, academics and students will contribute.
4. The study will be utilized as a source of reference material and will also propose areas for
potential future research.
2.2.3 Limitations of the Study

To reach its conclusion, this study will use scientific methods, but its findings will be
reflective. Therefore, unless comparable can be found in other places, the results of this study
might not be generalizable. Given the magnitude of the investigation, the little amount of time
available to do it is seen as a restriction.
Chapter Three: Methodology and Research Methods

3.1 Introduction
This section will outline the methods that will be utilised to gather and analyse data will
be the main topic of this thesis. It will be heavily concerned with the study design, the population
to be investigated, the sample selection processes and sampling techniques to be employed, data
collecting, methods of ensuring the validity and reliability of data and methodologies, and issues
relating to the methodology's limits.
3.1 Characteristics of the Study

3.1.1 Research Design
A research design is a comprehensive, in-depth plan or blueprint for discovering
solutions to the problems being investigated. A cross-sectional descriptive survey design was
used for the investigation. In order to learn about variables and their interactions with one
another, the design seemed appropriate. The researcher was able to evaluate whether there were
any significant connections between variables at a particular time using a cross-sectional
descriptive survey. Research design, as defined by Kirui (2016), is the organization of
parameters for data collection and analysis in a way that balances procedure economy with
relevance to the research process. This exploratory study aims to comprehend how SMEs have
used mobile money services and how such usage has affected the way they operate. Hence, the
purpose of this study is to provide answers to the research topics as they arise in their natural
environments. Surveys will be utilized to get the information. The goal is to learn what the
general public thinks about mobile money services and how they affect the performance of
SMEs.
3.1.2 Target Population

The study aims to address small and medium size businesses. With this it can be able to
effectively get the much-needed feedback when it comes to matters of how they perform while
making use of mobile money services. Hence, the entire group or subjects that the researcher was
interested in examining are referred to as the study's population. This definition guarantees the
homogeneity of the population of interest. Because everyone has an equal chance of being
included in the final sample, population studies are more representative. Aggarwal &
Ranganathan (2019), states that descriptive studies can use samples of 10–20 percent, but the
researcher chose 25 percent to make the sample more typical of the entire population. The SMEs'
managers/owners, clerks, and accountants will respond to the questionnaire. This is so because
these people are primarily responsible for the financial operations of SMEs.
3.1.3 Sample Design

To determine the sample design, it would be recommended when it comes to the
determining the size of the population, when it come to the scope of the study. Remembering that
the study involves small and medium sized enterprises, in order to get the much-needed data on
how using mobile money services affect the performance of the businesses. It will utilize the
formula describe below;
n = Z²Pq /d²
Where the ‘n’ represents the desired sample size (in this case, the number of businesses
which will be use but should not be more than 10,000); in addition, the ‘z’ will represent the
standard normal deviation at the required confidence level of (1.96), and finally the ‘P’
represents the proportion which will be utilized when it comes to the targeted population, and
have different characteristics being measure (0.5). The ‘q’ is represented as 1-p (1-0.5), and the
‘d’ represents the level of statistical significance set (0.05).
3.2 Working Methods

The study will make use of different forms of SMEs, which exist an are making use of
mobile money services. SME owners or managers from a variety of large towns made up the
study's population. The researcher used sampling; therefore, it will group enterprises into strata
like hotels, hardware stores, wholesalers, and mini-supermarkets. To enable extrapolation of the
results to all business lines, the sample will be made up of several business lines. Using Fisher's
Formula for Sample Size Less Than 10,000, the sample size was determined. With the exception
of major firms, proportionate sample sizes were acquired for each group. The computerized
(excel spread sheet) random sampling tools included in Office 2019 program were used to create
the random sample and were applied to the aforementioned categories.
3.3 Methods of Obtaining Data and Sources Used

The methodical procedure of acquiring information about a certain subject is known as
data collection. Making ensuring one’s data is accurate and was gathered in a morally and legally
correct manner is essential throughout the collecting phase. Otherwise, an individual’s analysis
will not be true and could have significant repercussions. Hence, both primary and secondary
data gathering methods will be used to gather data. The majority of primary data will be
collected via structured questionnaires. Other methods which will be utilized include (Mbachu,
2018);
3.3.1 Questionaries
A questionnaire is a device or tool used to collect data from respondents by asking them a
series of questions and providing further prompts. Based on the goals of the research, the
questionnaire was divided into five components. Because SMEs operators are familiar with the
trends in their industries, the questionnaire was appropriate for the study because it dealt with the
primary data that was relevant for it (Cote, 2021). The questionnaires were personally distributed
by the researcher, and the owners of SMEs responded right away. On the other hand, secondary
data will be acquired by examination of the accessible financial documents. Aryal (2017) claim
that questionnaires are a method of data collecting in which respondents respond to a number of
things in writing. Simply because this research will involve elite correspondents, I will be
utilizing questionnaires. Also, background data from the questionnaire included the respondent's
demographics, information about mobile money, specifics about SMEs and how these SMEs use,
evaluate, and rank mobile money services. A cover letter, explanations of how to answer each
question, and a sample data collection instrument were included.
3.3.2 Interview and Focus Groups

Face-to-face conversations about a particular subject or issue are the main component of
interviews and focus groups. Focus groups usually consist of multiple persons, whereas
interviews are normally conducted one-on-one. To collect both qualitative and quantitative data,
they can employ both. At times, it can acquire opinions regarding new product features from
members of their target market through focus groups and interviews. Real-time observation of
their interactions with their product and the recording of their emotions and inquiries might yield
insightful information about the features to pursue (Mbachu, 2018). These data collection
techniques provide ones with the same freedom to inquire about individuals' thoughts, drives,
and emotions surrounding their product or brand as surveys do. Additionally, it raises the
possibility of partiality. Make an effort to create inquiries that don't point them in any specific
path. Focus groups and interviews can be time- and money-consuming, which is one drawback.
It can be a drawn-out process if an individual decides to conduct it by themselves. To avoid this,

they can employ a facilitator for market research to plan and carry out interviews on their behalf.
3.4 Used Methods of Evaluation and Interpretation of Results

Data gathered in the field were used in the study. To fill in any gaps, the researcher
gathered primary data. Data from respondents was gathered through surveys and questionnaires.
To ensure that errors were removed in the field and to boost response rates, the questionnaire
included instructions on how to respond to each question and was presented by qualified data
collection officers. When the application was approved, the study's inquiries were transformed
into questionnaires for collecting research data. To gather data in the field using the sample
codes, trained data collection officers were hired. Since the questions were mostly exploratory in
nature, the use of data collecting officers was intended to help the respondents understand any
that they found challenging. The goal was to gather 10 to 15 responses every day from the field.
3.4.1 Data Evaluation

Data from sampled respondents was gathered and securely kept in research folders that
could only be accessed by the researcher for this study. All data must be kept confidential by
being kept in a secure area as a necessity. The majority of the approaches employed to analyze
the data were quantitative. Both descriptive and inferential statistical techniques were used in
these procedures. To find and correct mistakes and omissions, the data was first revised after
collection. This procedure was carried out concurrently with field data collection. After that, it
was coded in accordance with categorization in order to be entered into computers for data
analysis. Microsoft Excel statistical software and Statistical Packages for the Social Sciences
(SPSS) were both used for the analysis.
3.4.2 Interpretation of Results

When the application was approved, the study's inquiries were transformed into
questionnaires for collecting research data. To gather data in the field using the sample codes,
trained data collection officers were hired. Since the questions were mostly exploratory in nature,
the use of data collecting officers was intended to help the respondents understand any that they
found challenging. The study will make use of a data analyst to create the SPSS data entry
templates under his or her supervision. The questionnaires were then entered into the created
database for later analyses after being reviewed for accuracy and completeness. To make sure
data was entered appropriately, the researcher regularly checked entries to validate them. After
finishing with all the entries, data cleaning was done.
Furthermore, for the majority of the findings, descriptive measures like percentages,
means, and averages were used to summarize the study's findings, which were then displayed in
tables and graphs. Model tables, formulas, and an explanation of the findings were used to
display the results of the multiple regression analysis and coefficient of correlation. In-depth
discussions of the study results served as a foundation for the conclusions and study suggestions.
3.4.3 Data Reliability and Variability

The consistency of study findings is a challenge with reliability. The instrument's
dependability guarantees the internal consistency of the questionnaire. It is concerned with
estimates of how much a measure is free from random error and how confidently a trustworthy
instrument can be used without interference from temporary or situational influences. Data from
sampled respondents was gathered and securely kept in research folders that could only be
accessed by the researcher for this study. All data must be kept confidential by being kept in a
secure area as a necessity.
3.5 Statistical Methods

The majority of the approaches employed to analyze the data were quantitative. Both
descriptive and inferential statistical techniques were used in these procedures. To find and
correct mistakes and omissions, the data was first revised after collection. This procedure was
carried out concurrently with field data collection. After that, it was coded in accordance with
categorization in order to be entered into computers for data analysis. Microsoft Excel statistical
software and Statistical Packages for the Social Sciences (SPSS) were both used for the analysis.
Hence, the computation of certain metrics and the hunt for patterns of relationships between
data-groups are referred to as analysis. To facilitate analysis, the gathered data was revised,
coded, categorised, and tabulated (Mararo, 2018). To assess the data, the study used descriptive
statistics like percentages and means. Inferential statistics like correlation and regression were
utilized to examine the significant effect in order to identify the significance relationships
between the study variables. To test the research hypotheses, a correlation analysis was
employed in the study.
Additionally, the coefficient of correlation will be used to determine if dependent

variables such as transaction cost, transaction time and convenience, financial accessibility and
efficiency, and reliability are connected with SMEs performance in order to show how variables
related to the data obtained. To ascertain whether the four independent factors have any
discernible impact on SMEs performance, multiple regression analysis will be utilized. The
square of the sample correlation coefficient between results and expected values is the
coefficient of determination (r2). As a result, it describes the proportion of variation in the
dependent variable (growth of SME's) that is explained by each of the four independent factors
or the amount to which changes in the dependent variable can be explained by changes in the
independent variables.
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Effects of Mobile Money Services On The Performance of Small and Medium Size Enterprises

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Mobile Money Services and SMEs 1

COMENIUS UNIVERSITY BRATISLAVA (16)

FACULTY OF MANAGEMENT (16)

EFFECTS OF MOBILE MONEY SERVICES ON THE PERFORMANCE OF SMALL

Bachelor Thesis/Master Thesis/Rigorous Thesis/Dissertation Thesis (14b)

Author’s forename, surname, academic degrees (14)

COMENIUS UNIVERSITY BRATISLAVA (16)

FACULTY OF MANAGEMENT (16)

EFFECTS OF MOBILE MONEY SERVICES ON THE PERFORMANCE OF SMALL

Bachelor Thesis/Master Thesis/Rigorous Thesis/Dissertation Thesis (14b)

Study Program: Management/Business Management (11,5)

Field of Study: Economics and Management (11,5)

Training Workplace: Department of … (11,5)

Bratislava 202x (14)

Author’s forename, surname, academic degrees (14)

Specification of the Scholarly Work Approved by an Authorized Person

List Of Abbreviations and Symbols

IT- Information Technology

MMSs- Mobile Money Services

GDP- Gross Domestic Product

MFS- Mobile Financial Services

3.4 Used Methods of Evaluation and Interpretation of Results...............................................................35

Chapter One: Introduction

1.1 Method of Quoting

1.1.1 Standards of ISO 690: 2010 (E)

1.2 Current State of Dealt Problem in Inland and Abroad

13.1 Current State of Mobile Money Services

1.3.2 General overview of Small and Medium Business

1.3.3 Theoretical and Empirical Framework for SMEs Use of or MMSs

1.3.2.1 Theoretical Review

1.3.2.1.1 Unified Theory of Acceptance and Use of Technology (UTAUT)

According to Mugambe (2017), performance expectancy is defined as the likelihood that

of technology is determined by the model's supporting conditions, habits, and behavioural

1.3.2.1.2 Non-Back Led Theory

1.3.2.1.3 Technology Acceptance Model (TAM)

1.3.2.1.4 The Institutional Theory

SMEs business owners are responding to institutional limitations in a variety of

1.3.2.1.5 Resource based view theory

According to Grewal et al (2011) the resource-based view hypothesis, there are

1.3.2.1.6 Dynamic Capabilities Theory

1.3.2.1.7 The Innovation Diffusion Theory

1.3.2.1.8 Task-Technology-fit Theory

1.3.4 Contribution to Theories

1.3.2.2 Empirical Review

The majority of research focus on how commercial banks' performance is impacted by

1.4 Extend of the Final Thesis

Chapter Two: Aim of the Scholarly Work

2.1 The research Objective and Questions

2.1.2 The General Objective

2.1.3 The Specific Objectives

2.1.4 Research Questions

2.2 The Scholarly Work Purpose, Significance and Limitations

2.2.2 Significance of the Study

2.2.3 Limitations of the Study

Chapter Three: Methodology and Research Methods

3.1 Characteristics of the Study

3.1.2 Target Population

3.1.3 Sample Design

3.2 Working Methods

3.3 Methods of Obtaining Data and Sources Used

3.3.2 Interview and Focus Groups

It can be a drawn-out process if an individual decides to conduct it by themselves. To avoid this,