The Impact of Mobile Money Services on the Performance of Small and Medium Businesses in Uganda. A Case Study of Ntinda Business Area
Loading...
Date
2026-04-14
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The study sought to find the link that exists between mobile money services and the performance of small and medium enterprises in Ntinda. Mobile money services are expanding at a rate that is extremely high in Uganda, and this has affected the way in which business operations are carried out in the country. Most small and medium businesses are highly affected by mobile money services in the way in which they are able to run their operations. Despite the expansion of mobile money services in the country, there has been limited evidence that shows the level at which mobile money services influence the performance of small and medium enterprises, thus the need to find out whether mobile money services help in improving the performance of small and medium enterprises in terms of the growth of sales, the profits that are made, the efficiency of the business, and the way in which the finances are managed. The main aim of the study was to find out whether there is a positive link that exists between mobile money services and the performance of small and medium enterprises in Ntinda. Quantitative research was then employed in the study, and the quantitative research was done using the descriptive research design. The study sampled 67 business owners using simple random sampling techniques. The researcher used the structured questionnaires in collecting the data for the study. The study was analyzed using the Statistical Package for Social Sciences (SPSS). The researcher was able to determine the relationship between mobile money services and the performance of small and medium enterprises using the Pearson correlation analysis. On the other hand, the researcher was able to determine the extent to which mobile money services predict the change in the performance of small and medium enterprises using the regression analysis. The findings from the study showed that there is a positive and statistically significant relationship between mobile money services and the performance of small and medium enterprises (r = 0.768, p < 0.05). The findings from the regression analysis showed that mobile money services account for 59% of the variability in the performance of small and medium businesses, which indicates that mobile money is a major contributing factor to business success in the study area for this case, Ntinda. The findings from the study also went on to confirm that an increase in mobile money services leads to an increase in performance for small and medium enterprises. This therefore indicates that mobile money services improve the efficiency of a business, reduce transaction costs for a business, improve record-keeping for a business, increase sales, and improve customer satisfaction. The study then draws a conclusion that mobile money services play an essential role in improving the performance of small and medium businesses in Ntinda. The findings provide evidence that if mobile money services are adopted and highly used, they can have a positive influence on the growth and sustainability of a given business. The study then recommends that small and medium business owners should continue embracing mobile money services, and the government should also promote environments that support the growth of digital financial inclusion to strengthen the performance of small and medium businesses.
Description
Under graduate