Title: EFFECTS OF MOBILE MONEY TRANSFER OPERATIONAL COSTS ON PROFITABILITY OF MEDIUM AND SMALL ENTERPRISES IN OYUGIS
TOWNSHIP, HOMABAY COUNTY, KENYA
Authors: Gerishon Obalah Otilah,
Caroline Sitienei Koech
1Gerishon Obalah Otilah,
3Caroline Sitienei Koech 1,2,3. School of Business and Economics, Jaramogi Oginga Odinga
University of Science and Technology, P. O. Box 210-40601 Bondo, Kenya
MLA 8 Otilah, Gerishon Obalah, et al. "EFFECTS OF MOBILE MONEY TRANSFER OPERATIONAL COSTS ON PROFITABILITY OF MEDIUM AND SMALL ENTERPRISES IN OYUGIS TOWNSHIP, HOMABAY COUNTY, KENYA." Int. j. of Social Science and Economic Research, vol. 4, no. 9, Sept. 2019, pp. 6179-6192, ijsser.org/more2019.php?id=473. Accessed Sept. 2019.
APA Otilah, G., Nyagol, M., & Koech, C. (2019, September). EFFECTS OF MOBILE MONEY TRANSFER OPERATIONAL COSTS ON PROFITABILITY OF MEDIUM AND SMALL ENTERPRISES IN OYUGIS TOWNSHIP, HOMABAY COUNTY, KENYA. Int. j. of Social Science and Economic Research, 4(9), 6179-6192. Retrieved from ijsser.org/more2019.php?id=473
Chicago Otilah, Gerishon Obalah, Michael Nyagol, and Caroline Sitienei Koech. "EFFECTS OF MOBILE MONEY TRANSFER OPERATIONAL COSTS ON PROFITABILITY OF MEDIUM AND SMALL ENTERPRISES IN OYUGIS TOWNSHIP, HOMABAY COUNTY, KENYA." Int. j. of Social Science and Economic Research 4, no. 9 (September 2019), 6179-6192. Accessed September, 2019. ijsser.org/more2019.php?id=473.
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Abstract: Micro and Small Enterprises (MSE) are considered a vital engine in national growth it terms of
employment and national income. As noted by Arianoff, (2010), MSEs is a source of
employment as well as an instrument for poverty reduction within our communities. This study
focused to establish effect of Mobile Money Transfer (MMT) services on profitability of MSEs
operating in Oyugis Town of Homabay County, Kenya.. In its attempt to establish the effect of
MMT operational cost on profitability of MSEs in Oyugis Town the study adopted Technology
Acceptance Model (TAM). Data was obtained using questionnaires from MSEs owners. From
target population of 133 a sample of 52 MSEs owners provided information through a structured
questionnaire which was analyzed using descriptive and inferential statistics aided by Statistical
Package for Social Science (SPSS). The findings of the study revealed that MMT operational
cost had positive and significant effect on profitability of MSEs in Oyugis Town. Operational
cost reduction of mobile money transfer services has a significant effect on profitability (?= .219;
p<.05).The study recommended that MSE should adopt mobile money transfer in managing
transactions, administrative management, managing credit and overheads. Secondly, it will
create easy access credit, transferring payments to increase efficiency in working customers and
suppliers, better staff utilization will lead to reduced operational cost and increased convenience
and maintaining liquidity value of cash within virtual network. On further research, the study
recommended the need to look on the effect of adoption of MMT on sustainability of MSEs.
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