Determinants of mobile phone usage for e - commerce among micro and small enterprises in the informal sector of Kenya

Abstract

Studies done on the usage of Information and Commutation Technologies (ICTs) for e - commerce in the informal sector have mostly concentrated on the roles of computers and int ernet u sage, and give contradicting results on the determinants and benefits of using these technologies. Evidence on factors leading to the mobile phones usage for business among Micro and Small Enterprises ( MSEs ) in Kenya is lacking. This paper investigates determinants of mobile phone usage among informal MSEs in Kenya. Primary data was collected from a survey of 384 MSEs in Nairobi County. Linear probability model, logit and probit models were used to estimate the determinants of mobile phone usage in e - commerce . The results of the study show that education level is the prime determinant of mobile phone usage for e - commerce . N umber of employees and gender of MSEs also have a significant effect on the mobile phone usage for e - commerce . The study recommends the training of MSEs in the mobile phones applications for business and the government should create an enabling environment for MSEs to use mobile phone for e - commerce