The Effect of Mobile Money Services on the Financial Performance of Women-Owned Small Businesses in Uganda
No Thumbnail Available
Date
2025-09-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UGANDA CHRISTIAN UNIVERSITY
Abstract
This study explores the impact of Mobile Money Services on the financial performance
of women-owned small businesses in Uganda, with a focus on Nakawa Division,
Kampala. In a context where digital financial innovations are reshaping access to
finance, this research investigates the effects of mobile payments and transfers on sales
stability, mobile savings on working capital sufficiency, and mobile credit on business
growth and resilience.
The research employed a descriptive cross-sectional survey design, relying on
quantitative methods to provide a comprehensive analysis of how mobile money
services influence women entrepreneurs’ financial outcomes. Data was collected using
structured questionnaires from 150 respondents selected through stratified random
sampling to ensure fair representation of different business categories, including retail
shops, food vendors, informal service providers, and market traders.
The findings show that mobile money payments and transfers greatly improve financial
performance by improving sales stability, cash flow, and operational efficiency while
increasing customer reach. Mobile savings were found to build financial discipline,
working capital sufficiency, and reinvestment, although some women used funds for
household needs, limiting their long-term business impact. Access to mobile credit
enabled women to restock inventory, stabilize sales during off-peak seasons, and seize
sudden business opportunities, though challenges such as high interest rates, short
repayment terms, and misuse of funds occasionally undermined sustainability.
The study concludes that mobile money services are transformative tools for improving
financial performance and empowering women entrepreneurs in Uganda. However,
their full potential depends on financial literacy, affordable transaction costs, and
supportive regulatory frameworks. It recommends that women entrepreneurs adopt
disciplined and productive use of mobile money services, service providers design
gender-sensitive and flexible products, and policymakers strengthen oversight to curb
exploitative lending
Description
Undergraduate Thesis