The Effects of Mobile Money Agents on the Performance of SMEs: A Case Study of Morogoro Municipality

Thomas Elias

Abstract: SMEs in the developing world are increasingly deploying the use of mobile payment systems to enhance the quality of their services and increase growth. This study intended to investigate the effects of mobile money agents on the performance of SMEs, a case study of Morogoro Municipality. The study employed a mixed method research approach involving 90 respondents, of whom 85 were from SMEs and 5 from Mobile Money Operators (MNOs) in Morogoro Municipality. Questionnaires, interviews and documentary reviews were used as the tools of data collection. Qualitative data were analyzed by the use of a mixed method approach and content analysis of qualitative data and quantitative data were analyzed by descriptive statistics and regression analysis. Findings of the study showed only savings are statistically significant at 1% level of significance, while money transfer and receiving of payments are statistically significant at 5% level of significance. The study, thus, found that mobile money agents have significant impact on the performance of SMEs in Morogoro Municipality. It is recommended that more SMEs should be encouraged to adopt the use of mobile money agents. Mobile money operators should engage in educating the public on the advantages of mobile money services and the Government should create a more conducive environment for SMEs to increase the use of mobile money services by reducing levies on the services.

Keywords: Mobile Money Services and SMEs