 Effect of Mobile Phone Transfer Services on Performance of Micro and Small Enterprises: A Case of Trans-Nzoia County, KenyaKirigano B. Makee, Muturi Willy and Fred G. Atandi International Journal of Academic Research in Business and Social Sciences, 2014, vol. 4, issue 11, 111-123 Abstract: Over the last few years, small and micro enterprise owners have innovatively responded to changing market dynamics by adopting innovations in their firms aimed at maximizing on their returns as they minimize costs. Mobile-phone banking, Mobile payments commonly known as “Lipa na M-pesa” and Agent banking for instance are common aspects of these firms. However, the effect this adoption has had on their performance has remained unclear. This is what this study sought to find out. The study sought to analyze the effect of mobile phone transfer applications on performance trends of micro and small enterprises. The sampling frame constituted all micro and small enterprises found in the hair-dressing, carpentry and clothmaking industries in Kitale town. They were estimated at 500 according to county government revenue data. Simple random sampling was used. A list of all the 500 enterprises was compiled; the researcher then made use of random number tables to generate the sample. This was best achieved by the researcher blindly picking a number in the table of random numbers, and then progressed in a random way considering numbers 001 to 500; until a sample of 110 was achieved. A questionnaire was prepared using 1 to 5 point likert scale; with 5 as strongly agree to 1 strongly disagree. The survey was carried out between July 10th and August 5th 2014 in Kitale town. Of the micro and small enterprises surveyed,68 admitted to using the innovations, 30 did not use any of the innovations while 12 did not fill the questionnaire. Mobile phone applications were the mostly used with 46 (65.7%) of those surveyed admitting that they use them in their business, 2 (2. 9%) of those surveyed said they use Agent banking while 3 (3.1%) applied M-banking; 9(12.9%) applied all the three innovations mentioned. A sizeable group 10 (14.3%) said they used other innovations not listed for instance internet applications to get the latest fashion trends. The respondent expressed their views with 5 (strongly agree) to 1 (strongly disagree). Completed questionnaire was then collected for coding and analysis. Descriptive and statistical analysis was carried out from which the researcher was able to compute the Pearson product moment correlation (r) to establish relationship. The study revealed that there is indeed an effect of the mobile phone transfer services innovations on enterprise performance .Of the 66.3% of enterprises surveyed ,did indicate that when innovations are used they help bring more customers leading to more business income, 69.4% indicated that the innovations save time and money while 59.2% observed that the innovations contributed to their profits and that the more they invested in them the more the profits. Based on the findings, the study recommends a tax waiver on all mobile phones and related paraphernalia to enable majority apply them even in enterprises. Entrepreneurship policies on the other hand should be well researched before implementation to guarantee sustainability. Keywords: Mobile phone transfer services; Micro and Small Enterprises; Enterprise performance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:4:y:2014:i:11:p:111-123 Access Statistics for this article More articles in International Journal of Academic Research in Business and Social Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences |
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