Effect of Mobile Money Technology on Performance of Small and Medium Enterprises in Mukono Municipality
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Date
2025-09-25
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Uganda Christian University
Abstract
This study conclusively demonstrates that mobile money technology exerts a significant positive influence on the performance of Small and Medium Enterprises (SMEs) in Mukono Municipality. The research, which employed a descriptive cross-sectional design and collected data from 80 SME owners via structured questionnaires, identified a strong and statistically significant correlation (r = 0.837, p < 0.01) between the adoption of mobile money services and enhanced SME performance. Regression analysis pinpointed the specific impacts of key dimensions of mobile money: mobile banking was the most influential factor (β = 0.560), significantly streamlining financial operations like cash withdrawals, balance checks, and deposits, thereby saving time and reducing the risks of cash theft. Mobile payments (β = 0.296) were found to enhance transactional efficiency and convenience in dealings with both suppliers and customers, while mobile finance (β = 0.173) provided crucial access to savings and credit facilities, overcoming traditional banking barriers. Overall, the findings indicate that mobile money technology contributes directly to SME growth by improving profitability, enabling capital accumulation for expansion, and increasing operational efficiency. Therefore, the study strongly advocates for the full integration of these digital financial services by SME owners and recommends that policymakers and service providers work to enhance platform reliability and accessibility to further catalyze small business development in the region.
Description
UNDERGRADUATE RESEARCH
Keywords
Mobile Money Technology, SME Performance, Mobile Payments, Mobile Banking, Mobile Finance, Mukono Municipality, Uganda.