Assessment of mobile money services in facilitating small and medium enterprise (SMES) performance in Tanzania: a case of SMES at Ilala municipal council

This study aimed at assessing mobile money services in facilitating SMEs performance in Tanzania: a case of SMEs in Ilala Municipal Council. The research objectives, specifically, wanted to determine how mobile money services are being used by SMEs, examine the impact of mobile money services to the growth and performance of SMEs and to examine the challenges that are facing SMEs on the use of mobile money services. In order to meet these objectives, the research data were collected from a sample size of 60 respondents through documentary review, questionnaires and interview. The research findings revealed that SMEs are willing to use mobile money services continuously for their business performance as well as in selling and buying their goods/services. In addition, the findings indicated that mobile money services when used do improve efficiency and effectiveness of business operations and increase sales among SMEs. However, the findings reported that mobile money services are subjected to frequency problems such as security concerns and costs of operation, especially in deposit and drawing money from other financial institutions such as banks and other mobile money networks. The research, therefore, recommends that in order for SMEs to increase capital they should use mobile money services such as M-pawa and others available to access credit for their business growth and expansion. Also the mobile money companies have to address the problems related to network outages such as temporary disruptions or communication failures issues so as to increase efficiency and effectiveness in service delivery. Lastly, issues of cost for mobile money transaction services (deposit and withdraw) should be taken into consideration by mobile money companies so to enable SMEs use mobile money transactions services for growth and development of their business performance without grudges.