EFFECTS OF MOBILE MONEY TRANSACTIONS ON THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN THE GREATER ACCRA REGION OF GHANA

Authors: Gabriel S. Akakpo, Desire D. Senanu & Raymond Cudjoe

ABSTRACT

The aim of this study was to determine effects of mobile money transactions on financial performance of Small and Medium-Scale Enterprises in the Greater Accra Region of Ghana. The objectives of the study were to determine the frequency by which SMEs use mobile money transaction to carry out their financial transactions; and the effects of mobile money transaction on SMEs sales revenues, debt collection, and cash management. The study employed descriptive survey research design. A total of 78 purposively selected business representatives were sampled from a population of 223 businesses identified in the study locality. These 78 individuals were the ones responsible for the mobile money transaction platforms for their respective business. Questionnaires were developed and used as data collection instruments. The results were presented and analysed using charts, frequency tables, percentages and graphs. The findings of the study revealed that there is a general acceptance of mobile money transactions among the SMEs hence the high usage of the platform. The study also found that SMEs after adopting the use of mobile money transaction performed better in their financial transactions than they used to prior to the adoption of the mobile money platforms. Sadly, the study observed that network issues, limited acceptance by some suppliers/customers, security concerns about wrong transfers and lack of understanding of how mobile money platform works remain major challenges facing mobile money transaction among SMEs in Ghana. The study, however, showed that the usage of MMT had no statistically significant effect on sales revenue, debt collection and cash management of the SMEs. On the basis of these findings the study recommends that SMEs should monitor the usage of mobile money transactions in order to realize its full benefits on the financial performance of their businesses. Since most of SMEs use mobile money to carry out their financial transactions, the government should come up with a legislation that protects the usage of mobile money platforms and make it an acceptable way of their financial transactions

Keywords: Mobile Money Transactions, SMEs, Financial Performance

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