The Impact of Mobile Banking on the Financial Performance of Smes in Nairobi County, Kenya
Abstract
The objective of this project was to determine the impact of mobile banking on the
financial performance of SMEs in Nairobi County, Kenya. The study employed a
descriptive research design to achieve this objective. The targeted populace was the
SMEs operating in Nairobi County, whereby the researcher used a formula to estimate
the sample size to be 400 SMEs. The sampling of respondents was done randomly to
offer an equal opportunity for all the SMEs to participate. The researcher utilized primary
and secondary data in the investigation. Semi-structured questionnaires were distributed
to the target population to amass the primary data. Then the scholar gathered secondary
data via different publications like journal articles, books, government records, bank
statements, and others reliable for use in the study. The researcher executed multiple
regression analysis and correlation to determine the effect of mobile banking on the
financial performance of SMEs. The findings revealed that the highest proportion of the
participants detailed that m-banking assisted them to pay bills, transfer money, receive
payments, borrow mobile loans, saving money, and pay their suppliers. Hence, mbanking
services boosted the efficiency of SME operations and minimized their costs
when compared to traditional banking. Additionally, the research revealed that mobile
loans have contributed to an increase in the financial performance of SMEs. The study
also discovered that a positive, significant, and strong correlation existed between mbanking
deposits and the financial performance of SMEs. Likewise, the study revealed
that a rise in the utilization of m-banking payment services positively affects the
performance of SMEs. The study concluded that mobile banking positively and
significantly affects the financial performance of SMEs within Nairobi County.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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