Impact of Mobile Services On the Performance of Small and Medium Enterprises in Uganda: A Case Study of Kansanga Business Area.

Abstract The general objective of the study was to examine the influence of mobile money services on the growth of small and medium enterprises in Kansanga business area and the specific objectives of the study were; to examine the effect of mobile payment on the growth of SMEs in Kansanga business area, to establish the effect of mobile finance on the growth of SMEs in Kansanga business area and to determine the effect of mobile banking on the growth of SMEs in Kansanga business area. The findings of the study revealed that mobile payment greatly improves the performance of small and medium enterprises as respondents agreed to all the statements used to measure this objective. The most accepted statement was that their businesses have expanded because of using mobile payments which was accepted with a percentage response of 85.The findings of the study revealed that mobile finance improves the performance of small and medium enterprises as respondents agreed to most of the statements used to measure this objective except that it was revealed that through mobile finance, they are not able to obtain credit from financial institutions. The findings of the study also showed that mobile banking generally improves the performance of small and medium enterprises in Kansaga as respondents agreed to statements that were used to measure this objective except that mobile banking does not reduce the cost of transactions. In other words the costs associated with mobile banking are high. The study recommended that; the government should encourage SME sector at every level to greatly adopt the use of mobile payment as it enhances the performance of SMES, the Banking institutions should cooperate with Telecom companies in order to enable SME owners to attain finance from banks through mobile finance services, the government should reduce on the taxes charged on transactions via mobile banking as respondents revealed that the costs associated with mobile banking are high.