To assess the effectiveness of mobile money application in the development of SMEs case study of Moshi Urban

Abstract

The main objective of the study was to determine the effectiveness of mobile money in supporting the growth of the Small and Medium Enterprises in Tanzania. The study was carried out in Moshi Urban, Kilimanjaro Region in Tanzania. Specifically, the study intended to determine the qualities of mobile money services which drive the SME’s to use mobile money and the values it add to its users. A total of 38 SME’s owners were randomly selected from different parts of Moshi Urban as a study sample. The primary data were collected through interview using semi structured questionnaires followed by focus group discussion. The secondary data were collected from papers and other documents related to SME’s and mobile money. The data were analyzed by using Statistical Package for Social Science (SPSS). More than 70% of respondents agree that the use of mobile money has played great role in development of their SME’s. Furthermore the study found that majority SME’s who are using mobile money are wholesales, followed by small retail shops. And the factor that influences the adoption of mobile money in SME’s among other are cost of serving, and ease of use. Despite the significances there were some challenges associated with the mobile money, thus the study recommends that the cost of using mobile money should be reduced to attract more SME’s to use mobile money also to reflect the living standard of many people. Doing so, it will increase the competitive advantage with the financial institutions. Moreover, the government should introduce the mobile money policy in order to regulate the mobile money operations and smooth its operations