The role of financial inclusion in enhancing digital performance of Micro and Small Enterprises (MSEs) in Uganda
| dc.contributor.author | Sharif Kiboneka | |
| dc.date.accessioned | 2026-08-24T10:10:33Z | |
| dc.date.available | 2026-08-24T10:10:33Z | |
| dc.date.issued | 2026-05-25 | |
| dc.description | Undergraduate | |
| dc.description.abstract | The aim of this study was to investigate the effect of financial inclusion on the performance of Micro and Small Enterprises (MSEs) in Uganda, using data from the nationally representative FinScope Uganda 2023 survey. A quantitative approach was used, with adults engaged in self-employment or small-business activities as a proxy for MSE operators. Financial inclusion was based on mobile money use and formal credit, and MSE performance was based on indicators of profitability (cash flow stability), resilience (shock coping) and growth (investment/expansion plans). It was found that 63.6% of MSE operators use mobile money for one or more purposes (weighted), which is significantly higher than the general adult rate (p=0.0011), indicating high digital inclusion among MSE operators. Persistent barriers to accessing formal credit were evident, with only 38.5% of people accessing it. Moderate levels of performance indicators were reported: 65.7% of respondents indicated that their cash flows were stable; 68.3% reported facing financial shocks; ~75–76% reported coping resiliently through their own resources; and about 40% reported plans for investment/expansion. Formal credit access (p<0.001) and growth-oriented intentions (p=0.0109) were significant correlates of mobile money use, implying that mobile money is complementary to formal credit and contributes to growth capacity. But there was no significant association between inclusion (mobile money or formal credit) and shock coping quality (p>0.05), suggesting that although inclusion is common in times of crisis, it is not apparent that it decreases distress coping strategies. The study finds that financial inclusion, specifically mobile money, positively affects the performance of MSEs in Uganda, particularly growth potential, but the exclusion from formal credit and the limited role of mobile money in enhancing resilience remain challenges. Best practices suggested include enhancing mobile money services for businesses, increasing mobile money credit products for MSEs, and addressing gender and regional gaps. Further studies based on primary or longitudinal data are required to confirm causality and to understand the usage patterns in the business. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/3572 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | The role of financial inclusion in enhancing digital performance of Micro and Small Enterprises (MSEs) in Uganda | |
| dc.type | Dissertation |