IMPACT OF ACCEPTANCE RATE OF MOBILE PHONE CREDIT AND SAVING SERVICES ON THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES

Abstract

Businesses all over the world are getting more and more interested and involved in strategic management with integration of the corporate strategy in functional decision- making hence the competitiveness, and profitability of the firm. The general objective of the study was to determine the impact of acceptance rate of mobile phone credit and saving services on the performance of micro and small enterprises in Kisii Town, Kenya. A cross sectional survey research design aimed at identifying MSE owners’ perception on the acceptance rate of mobile phone credit and saving services on the performance of micro and small enterprises was used. Stratified sampling was used to identify the MSEs and simple random sampling techniques used to select the respondents and questionnaires placed to collect the data. A questionnaire was used to collect data and a split-half method of estimating reliability used with the aim of assessing the reliability and validity of the research instrument through the expert advice of the supervisors and faculty. The study sample comprised four hundred (400) owners of MSEs out of a population of three thousand five hundred and twenty eight (3528). Once the data has been collected, quantitative data was analyzed using descriptive statistics such as mean. Multiple regression analysis was employed to test the hypotheses. The study showed among other findings, that there is an impact on acceptance rate of mobile phone credit and saving services on the performance of micro and small enterprises. On the basis of the regression results, the study concludes that although the micro and small-scale enterprises operating in Kakamega County, Kenya have invested in mobile phone credit facilities, they have not significantly contributed towards their performance. Also, it was found that the acceptance of the mobile phone saving facilities has significantly contributed towards performance of the micro and small-scale enterprises. It was therefore recommended among others that the owners and senior managers of the micro and small-scale enterprises in Kakamega County should invest more resources in enhancing the mobile phone saving facilities so as to significantly drive performance of their firms.