The contribution of mobile banking services to micro business growth in Tanzania: a case study of micro business in Dar es Salaam

Micro business through integration of mobile banking services with mobile phone technologies were regarded as a means to develop and advance business inclusion in Tanzania as only 35% of total Tanzanians are micro business and had access to mobile banking services via telecommunication companies (World Bank, 2015). The general objective of this study was to assess the contributions of mobile banking services to the micro business growth in Tanzania. Specifically, the study looked at gaps in mobile financial services to micro business offered by Telecommunication Companies in Tanzania, factors influencing use of mobile banking, and determinant factors for micro business growth contributed by mobile banking services. In order to achieve the objectives of this study; a total number of 143 micro businesses were involved in this study and they were accessed through convenient sampling method. Quantitative method of data collection was used. After gathering and entering the data in SPSS version 20 the results were analysed using multiple regression analysis. Each variable was measured using five point Likert scale. Furthermore, the findings evidenced that most of micro business perceived to use mobile banking services due to the relative advantage, services convenience as well as services credibility which contribute to the business growth. On the other hand, the increase in money transfer, increase business volume, improving habit for savings, reduction in business operating costs or processing cost as well as time for processing payments is verify the micro business growth in Tanzania. In order for mobile banking services to continue be effective in business inclusion, service should be integrated into existing micro business infrastructure due to the fact that cash is still a significant medium of business transactions. This means that an additional agent in business network for mobile banking services should be maintained by Telecommunication industries.