Mobile Money and SME Growth: A Zambian Perspective

Abstract

Purpose: An in-depth analysis of how mobile money services influence the growth and development of Small and Medium-sized Enterprises (SMEs) in Zambia. This research explores the expanding realm of mobile money in Zambia, a region experiencing swift technological uptake alongside the growing small and medium-sized enterprise (SME) industry. Methodology: Using a blend of qualitative and quantitative research methods, data was gathered from 150 SMEs across various industries in Lusaka. The study examines key factors such as transactional efficiency, access to financial services, cost reduction, and enhanced financial management facilitated by mobile money platforms. It also explores the challenges faced by SMEs in adopting these digital financial tools. Findings: The findings reveal a significant correlation between the use of mobile money services and SME growth, characterized by increased operational efficiency, broader market access, and improved financial management. Unique contributor to theory, policy and practice: This study not only underscores the important role of mobile money in transforming the economic structure for SMEs in Zambia but also provides valuable insights for policymakers and financial service providers aiming to boost the SME sector through technological innovation. The research contributes to the growing body of knowledge on digital finance and its impact on emerging economies, highlighting the unique dynamics and opportunities within the Zambian context.