The Contribution of Mobile Money Services to the Performance of Small Scale Businesses in Rural Areas Case Study: Kayabwe Trading Center; Kayabwe Sub County-Mpigi District

Abstract

This dissertation examines the role of mobile money services in the performance of small scale businesses in rural areas especially by looking at the profit margin of the businesses, the number of customers and also the number of sales in the businesses.

Mobile money services are considered to be the newest and best technological advancement that helps people to transfer money from one person to another. Mobile money helps people to send money from one person to another using their phones both the users and one has to be a registered user. This platform has been used by business people to transact business by receiving money from customers, sending money to suppliers and also saving their money on their phones.

Mobile money services have had a big influence on the businesses in rural areas in many ways when it comes to the aspect of increasing on the sales mobile money has actually helped the businesses by pulling in more customers who use the service and actually those customers tend to buy more when they have mobile money because it becomes easy to send money to the business owner for the goods than when a customer knows that they have limited money they tend to spend less than when they assure that they have a backup of money. The service has also improve on the profit margin of businesses in that use the service in their business because the service allows for their customers to spend more because they have their money on hand and this has led to them spending more and since the businesses allow for customers to use this service this in turn also increases their customer base because in this day and era where everyone almost uses mobile money, having the service in your business pulls in more customers and therefore making more sales and in the long run increases the profit margin.

According to the findings in this study, it was discovered that the small business owners who used the service actually made a big difference in their number of sales, profit margin and also had pulled in more customers who actually prefer to use the service and this has improved on the performance of small scale businesses in rural areas.