Factors influencing M-money growth among small business

Abstract

This study examined the Factors influencing M money growth among small Business in Iringa Municipality, Tanzania. The specific objectives of this study were to identify factors influencing growth of M-money in small business; identify the benefits of the growth of M-money to the people and to determine the advantage of growth of M-money in economic issues. Data were collected through questionnaire, unstructured interview and observations. The Statistical Package for Social Science (SPSS) version 20 was used for data analysis. The study shows that about 97.5% of 120 people they use M-money Service and only 2.5% of 120 do not use the service frequently. This entail that a large group of people in Iringa Municipality use M-money Service as compared to those who do not. The results further shows that 96% the M money service help to increase the capital of the people in the Municipality, followed by 94% of the benefits is for helping parents with different family problem.

The rapid expansion of cell phone usage in Iringa has been triggered by a highly competitive market and service diversification, with the operators now providing different cell phone services including M-money Service which in turn provides Socio-economic impact to the people around. According to the study about 98% of the respondents the M-money service benefits the socially and economically. M-money service gives people different opportunities , About 99% of the respondents said the service gives them opportunity as an employment which enables them to pay tax and school fees to their children. Furthermore, with the m-money service due to provision of tax in the business are enables the development of towns and municipality. The study shows that about 100% the M-money service enables the development of towns and centers. The only challenge that hinder is the availability of mobile phone networks, in some cases the network coverage limit the provision of the service especially due to expansion of the Municipality.