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Stressing the importance of SMEs in any economy, Hallberg (2000) indicated in his work that small and medium enterprises (SME) sector has an important role to play in economic development, poverty reduction and creation of employment in developing economies. However, on the other hand, stressing on the factors hindering development of SMEs, Lennart, B and Bjorn, S (2011), in their work, they generally point out that; “in Africa, a conjecture is that most SMEs struggle to make the cash-flow equation work out”.
Therefore, this study aimed at finding out if mobile money services would be taken for a solution to the cash-flow equation, one of the reasons, making it a nightmare to the performance of SMEs in Africa, Tanzania in particular. Focus was made to understand, since the uptake of mobile money services in Tanzania, if there has been recognizable contribution to the SMEs‟ overall performance, specifically in the regions of volume of sales increase and reduction in SMEs operating costs.
Through selective sampling, interviews were carried out involving ninety four SMEs from various business regions, ranging from floristry, welding, woodworks/carpentry and wholesaling in Dar es Salaam. Generally, through the ascertainment by positive responses for there to have been substantial savings realized through not requiring physically transporting cash or consuming much time in bank queues, it was thus made conclusive that, if furthered mobile money services would be a contributing factor towards improvement of performance of SMEs in Tanzania.
However, it was on the other hand identified that for mobile money services to gain acceptance, MMNOs should ensure there to be maximum end to end security to address fraudulent acts and also to provide reliable support services for immediate and accurate addressing of issues that users face when using their services. |
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