A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)

Beatrice Karanja Kimani; Jemimah Wangui Muraya; Christopher Ouma Onyango

doi:doi:10.11648/j.ajtas.20160503.15

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A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)

Beatrice Karanja Kimani, Jemimah Wangui Muraya, Christopher Ouma Onyango

Published in American Journal of Theoretical and Applied Statistics (Volume 5, Issue 3)

Received: 13 April 2016 Accepted: 20 April 2016 Published: 3 May 2016

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Abstract

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.

Published in	American Journal of Theoretical and Applied Statistics (Volume 5, Issue 3)
DOI	10.11648/j.ajtas.20160503.15
Page(s)	108-114
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Mobile Money Transfer, Micro and Small Enterprises, Factor Analysis, Principal Component, Factor Loadings

References

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[2]	Cornish. R. (2007) Statistics: 3.3 Factor Analysis <http://www.statstutor.ac.uk/resources/uploaded/factoranalysis.pdf >
[3]	Government of Kenya, (1999) National Medium and Small Enterprises Baseline Survey, Kenya. National Bureau of Statistics. <http://www.knbs.go.ke. >
[4]	Government of Kenya. (2005) Session paper No.2 of 2005 on,” Development of Micro and Small enterprises for wealth and employment creation for poverty reduction.” Government printer. Nairobi.
[5]	Government of Kenya, (2008). Kenya National Bureau of Statistics <http://www.knbs.go.ke. >
[6]	Hair, J. F., Anderson, R. E., Black, W. C., Tatham, R. L. (1998), Multivariate data analysis, 5th Edition, Prentice Hall, Engelwood Cliffs, New Jersey, U.S.A.
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[8]	Kenya Economic Report (2009). "Building a Globally Competitive Economy". The Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya
[9]	Macharia. K. (2015) “Mobile-money-transactions-hit-sh2-trillion-in-2014” <<http://www.capitalfm.co.ke/business/2015/01/ > >
[10]	Mbogo, M. (2010).The impact of mobile payments on success and growth of micro-business: The case of M-pesa in Kenya. Journal of language, technology & entrepreneurship in Africa. 2(1), 180-203.
[11]	Mwaura, L. M. (2011). “Factors that influence the financing of micro and small (MSEs) by commercial banks in Kenya”. (Unpublished MBA Thesis, Kenyatta University) enterprises.
[12]	Nation correspondent (2013, June 25).” Safaricom launches Lipan a M-pesa campaign”. Daily Nation. Business News pp 32.
[13]	Parker, J. C. and Torres, T. R. (1994). "Micro-and Small-Scale Enterprise in Kenya." Results of the 1993 national Baseline Survey. GEMINI Technical Report No. 75. Development Alternatives, Inc.
[14]	Pickens, M. and Brian, R. (2007). Mobile Wallets and Virtual Currencies in Financial Services, ICT Update (36). < http://ictupdate.cta.int/en/Feature-Articles/Mobile-wallets-and-virtual-currencies. >
[15]	Rao, C. R. (2003) Sample surveys Design, Methods and application: Handbook for Statistics 2A.
[16]	Salzaman, M., Palen. L., Harper, R. (2001). Mobile Communication: Understanding Users, Adoption and Design. (Lecture) Paper presented in CHI workshop.
[17]	Taylor. A. (2002) A Brief Introduction to Factor Analysis <http://www.psy.mq.edu.au/psystat/other/FactorAnalysis.PDF >
[18]	Widaman, K. F. (1993). Common factor analysis versus principal component analysis: Differential bias in representing model parameters? Multivariate Behavioral Research, 28, 263-311.

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Beatrice Karanja Kimani, Jemimah Wangui Muraya, Christopher Ouma Onyango. (2016). 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, 5(3), 108-114. https://doi.org/10.11648/j.ajtas.20160503.15

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ACS Style

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). Am. J. Theor. Appl. Stat. 2016, 5(3), 108-114. doi: 10.11648/j.ajtas.20160503.15

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AMA Style

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). Am J Theor Appl Stat. 2016;5(3):108-114. doi: 10.11648/j.ajtas.20160503.15

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@article{10.11648/j.ajtas.20160503.15,
  author = {Beatrice Karanja Kimani and Jemimah Wangui Muraya and Christopher Ouma Onyango},
  title = {A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {5},
  number = {3},
  pages = {108-114},
  doi = {10.11648/j.ajtas.20160503.15},
  url = {https://doi.org/10.11648/j.ajtas.20160503.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20160503.15},
  abstract = {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.},
 year = {2016}
}

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TY - JOUR
T1 - A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)
AU - Beatrice Karanja Kimani
AU - Jemimah Wangui Muraya
AU - Christopher Ouma Onyango
Y1 - 2016/05/03
PY - 2016
N1 - https://doi.org/10.11648/j.ajtas.20160503.15
DO - 10.11648/j.ajtas.20160503.15
T2 - American Journal of Theoretical and Applied Statistics
JF - American Journal of Theoretical and Applied Statistics
JO - American Journal of Theoretical and Applied Statistics
SP - 108
EP - 114
PB - Science Publishing Group
SN - 2326-9006
UR - https://doi.org/10.11648/j.ajtas.20160503.15
AB - 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.
VL - 5
IS - 3
ER -

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Author Information

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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APA Style

Beatrice Karanja Kimani, Jemimah Wangui Muraya, Christopher Ouma Onyango. (2016). 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, 5(3), 108-114. https://doi.org/10.11648/j.ajtas.20160503.15

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ACS Style

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). Am. J. Theor. Appl. Stat. 2016, 5(3), 108-114. doi: 10.11648/j.ajtas.20160503.15

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AMA Style

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). Am J Theor Appl Stat. 2016;5(3):108-114. doi: 10.11648/j.ajtas.20160503.15

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@article{10.11648/j.ajtas.20160503.15,
  author = {Beatrice Karanja Kimani and Jemimah Wangui Muraya and Christopher Ouma Onyango},
  title = {A Multivariate Analysis of the Effect of Mobile Phone Money Transfer on Micro and Small Enterprises, Thika Town (Kenya)},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {5},
  number = {3},
  pages = {108-114},
  doi = {10.11648/j.ajtas.20160503.15},
  url = {https://doi.org/10.11648/j.ajtas.20160503.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20160503.15},
  abstract = {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.},
 year = {2016}
}

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