The effect of fintech innovations on the financial performance of SMEs in Mukono Municipality
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Date
2025-09-22
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Uganda Christian University
Abstract
This study investigates the effect of Fintech innovations on the financial performance of small and medium enterprises (SMEs) in Mukono Municipality, Uganda. With Fintech growing at a 25.73% CAGR in Uganda and SMEs contributing significantly to the economy, the research addresses the gap in localized evidence on Fintech’s impact. Using a mixed-methods approach, the study examines mobile money services, digital lending platforms, online banking, and digital payment systems, assessing their influence on profitability, revenue growth, cash flow, access to funds, and operational efficiency. Data were collected from 66 SMEs through questionnaires and 15 interviews, analyzed using descriptive statistics and thematic analysis. Findings indicate high Fintech adoption and positive perceptions, particularly for operational efficiency and cash flow, but weak statistical correlations due to barriers like transaction fees and connectivity issues. The study aligns with the Technology Acceptance Model and Resource-Based View, recommending enhanced training, affordable lending, and infrastructure improvements to maximize Fintech’s benefits for SME sustainability and financial inclusion in Mukono.
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Undergraduate