Analysis of the effect of mobile money transfer facility on business performance of mobile money agents: A case study of Kikuubo traders in Kampala

Abstract

This study is an investigation, on the significance of the Mobile Money Transfer Facility to the Business Performance of Small and Medium Enterprises in Uganda. Specifically, the study sought to (i) effect of background characteristics: (ii) to find out effect of Number of lines owned by agent; (iii) period spent in Mobile Money (iv) effect of volumes of transactions and (v) effect of family size of the Mobile Money agent on the business performance of Mobile Money business of traders in Kikuubo trading area. This research adopted a descriptive research design aimed at collections of data and the tabulation of frequencies on research variables and the research reveals who, what, when, where or how much (Saunders and Thornhill, 2000). A Simple Random Sampling was used to select 112 respondents from the total population to participate in the study. With the aid of Stata 15.0 computer software, data analysis was performed at three different levels namely univariate and bivariate and multiple regression. Univariate analysis with the aid of descriptive statistics and of frequency counts and percentage while Bivariate analysis undertaken with the aid of ANOVA and Chi-square (2) to test the nature of relationship between the variables and finally OLS. Results revealed that except for family size, the volume of transactions, Number of Mobile Money lines, Number of customers and period spent in business revealed a weak but positive statistically significant correlation with the business performance using spearman’s correlation. With training, there is need to set goals and apply high impact marketing skills to attract customers of different socioeconomic background.