dc.description.abstract | More than 60% of small and medium enterprises collapse before their fifth birthday and
among the prominent reason for collapse is lack of capital or cash flow problems, yet the
benefits of thriving small and medium enterprises in an economy like Kenya cannot be
gainsaid. Many studies have been conducted in the area of mobile phone based loans and
their effect on performance within the small and medium enterprises. However, such
studies have focused on different variables and cannot be said to have addressed every gap
available. It was therefore necessary for the current study to conduct a scientific research
on the effect of mobile phone based loans on performance of small and medium enterprises
focusing on three variables such as nature of use, repayment method, as well as
convenience. The study employed diffusion innovation theory and technology acceptance
theory in a correlation study design. The total sample size of the study was 383 while the
instrument of data collection was questionnaire. Data analysis was done using both
inferential and descriptive analysis methods with the use of SPSS version 23 to compute
the primary data collected. The findings divulged that independent variable which was
mobile phone based loans explained 43.6% (R2 =0.436) disparity of the dependent variable
which was performance. In particular, nature of use had a significant positive effect on
performance (β =0.430, p< 0.05). Similarly, the study divulged that convenience had a
significant positive effect on performance (β =0.420, p< 0.05). However, the study
establish insignificant negative relationship between repayment method and performance
(β =-182, p< 0.133). The study concluded that nature of use and convenience should be
supported while energy should not be spent on repayment method. | en_US |