A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)
American Journal of Theoretical and Applied Statistics
Volume 5, Issue 3, May 2016, Pages: 108-114
Received: Apr. 13, 2016;
Accepted: Apr. 20, 2016;
Published: May 3, 2016
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Beatrice Karanja Kimani, Department of Statistics and Computer Science, Moi University, Eldoret, Kenya
Jemimah Wangui Muraya, Department of Statistics and Computer Science, Moi University, Eldoret, Kenya
Christopher Ouma Onyango, Department of Statistics and Actuarial Science, Kenyatta University, Nairobi, Kenya
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The introduction of mobile money transfers (MMT) services has increased access to banking services among business entrepreneurs. This facilitates quick and secure platform for small savings to a majority of both rural and urban populations. The MSEs are increasingly adopting the use of mobile money transfers to increase the quality of their services and promote growth. However, limited research has been done on the impact of MMT services on the small and micro-enterprises. This study aimed at investigating the effect of mobile money transfers on the MSEs success factors, growth and expansion. The survey was conducted through administration of questionnaires and interviews of MSEs operators in Thika Town, Kenya. Data analysis was done using multivariate techniques, to a deeper extent the factor analysis. It was evident from the factor analysis, using principal component analysis that three factors were extracted which loaded highly on given variables. The factors were suggested to be demographic, accessibility and satisfaction, after considering the variables that loaded on each factor. The findings were expected to be useful to the mobile payments technology providers, by offering greater entrepreneur support to the micro business operators and enhance customers’ convenience to use the technology. The government can also use these findings when designing appropriate plan of action to encourage many more business operators to adopt the MMT services through funding and other platforms.
Mobile Money Transfer, Micro and Small Enterprises, Factor Analysis, Principal Component, Factor Loadings
To cite this article
Beatrice Karanja Kimani,
Jemimah Wangui Muraya,
Christopher Ouma Onyango,
A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya), American Journal of Theoretical and Applied Statistics.
Vol. 5, No. 3,
2016, pp. 108-114.
Copyright © 2016 Authors retain the copyright of this article.
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) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.