Performance Of SMEs In Ghana: Do Mobile Money Payments Matter?

ABSTRACT Studies investigating SME performance is rather limited. On the other hand, calls have been made for better collaborative effort in producing more comprehensive studies on mobile money payments and the value they offer stakeholders. Indeed, whereas some studies have established the impact of varied factors on SME performance, it is still unclear the influence mobile money payments have on the performance of SMEs. Therefore, the study sought to assess the impact of mobile money payments on the business performance (financial, operational, service) of Ghanaian SMEs; to explore the performance measurement indicators adopted by SMEs; and to examine the types and preference of payment systems adopted by Ghanaian SMEs. Qualitative research approach was adopted to provide direction for the study. Specifically, a multiple case study design was used. Twenty (20) cases (SMEs) were explored through face-to-face in-depth interviews. One significant finding of the study was that, most SMEs in recent time were relatively younger, highly educated, had occupations entirely different from their professions, operated young businesses and were very customer oriented. The key finding of the study indicated that, mobile money payments had enhanced the financial, operational and service performance of the SMEs. The study concludes that, the ‘convenience’ feature of mobile money payments was the key factor for its adoption by SMEs, underscoring their preference of mobile money payments over other payment systems. In view of these insights, policies must be instituted to create a favourable environment for the sustainability of the businesses of the budding SMEs, and to further attract more of such entrepreneurs as a way of minimizing the unemployment canker in the country. Again, the mobile money payments service has come to stay and it is a huge blessing to SMEs. Providers of the service must therefore prioritize the needs of SMEs in their scheme of things and employ more customer-focused approaches in their business activities.