TECHNOLOGICAL INNOVATIONS AND FINANCIAL INCLUSION OF SMALL AND MEDIUM ENTERPRISES IN NAIROBI COUNTY, KENYA

Daniel Elizabeth Wambui Gona, Prof. Maurice Juma Ogada, Ms. Monica Wanjiru

Abstract


This study sought to examine the effects of technological innovations and financial inclusion among SMEs in Kenya. Specifically this study addressed the following specific objectives:- To determine the effect of mobile banking on usage of financial services among of Small and Medium Sized Enterprises in Nairobi County, secondly to evaluate the influence of agency banking on access to financial services among Small and Medium Sized Enterprises in Nairobi County. The study adopted a descriptive research design. The study was supported by diffusion innovation theory and theory of financial innovation theory. The target population for the study comprised 300 SMEs that are registered and operates as Kariobangi Light Industries in Nairobi County. The sampling design employed stratified random sampling based on the line of trade a firm operates yielding a sample of 155 enterprises. The study adopted a structured questionnaire as the primary method for collecting cross sectional data. Data was analysed by descriptive statistics mainly frequency distributions and mean scores. Data was further analysed using inferential analysis mainly correlation where the objective was to determine the nature and strength of relationship among the variables of the study. The main findings of this study was that mobile money platforms or rather the emerging technological innovations in the business environment have facilitated financial inclusion mainly by reducing cost of doing business, improved access to various financial services, improved access to financial credit and savings support. It was therefore concluded that technological innovations have helped deepen financial inclusion within the SMEs. [1]

Keywords:

Technological Innovations

Financial Inclusion

Mobile Banking

Agency Banking

Small And Medium Sized Enterprises


[1] Gona, E.W. D., Ogada, M.J., & Wanjiru, M., (2023). Technological Innovations And Financial Inclusion Of Small And Medium Enterprises In Nairobi County, Kenya. International Journal of Social Science Management and Entrepreneurship, 7(2023), 420-428


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