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Factors influencing the intention to use mobile money among micro entrepreneurs in Mogadishu

Abdul Razak, Dzuljastri and Bile, Abdisalam Nor (2023) Factors influencing the intention to use mobile money among micro entrepreneurs in Mogadishu. International Journal of Business, Economics and Law, 28 (3). pp. 77-85. ISSN 2289-1552

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Micro-small and medium-sized enterprises use mobile Money for the purpose of purchasing goods, paying bills, and managing their money. A 2017 World Bank report says mobile Money is rapidly growing in volume and value. It is becoming the dominant financial system in Somalia because it enables commercial organizations to enter and thrive inside the ecosystem. Nevertheless, since Somalia has not had a strong central bank and regulation of the financial system since 1991, the extensive usage of Mobile Money transfers is a source of instability and opportunity. It is a double-edged sword for the economically challenged since it may have a positive impact on the success of their businesses or a negative one. In this paper, we aim to measure the factors influencing the intention to use mobile Money among Micro entrepreneurs in Mogadishu. This study adopts Technology Acceptance Model. A sample of 140 respondents was contacted. Descriptive statistics were used to analyse the data and estimate the model parameters. The strength of the model was tested, and we found that the model is strong enough to correctly estimate the model parameters. SPSS was used to examine the interrelationship between variables. We provide evidence that mobile Money has a positive contribution to financial inclusion. Perceived ease of use, perceived usefulness, and behavioural intentions are significant elements that contribute to financial inclusion. They all have a positive and significant relationship with financial inclusion among MSMEs in Mogadishu. Attitude has a positive direction with financial inclusion, but it is insignificant. The result has contributed to the body of knowledge on using mobile money technology to improve the quality of work. This study also suggests a need to establish an efficient regulatory system and enable an environment for mobile Money. Government and financial institutions should utilize mobile money services to reach the unbanked rural population and give them accounts usable through mobile phones. The perception of customers of Mobile money service products’ usefulness and ease of use is critical; thus, companies who provide mobile money services should embed these two constructs in the design of their products as they compete for market share.

Item Type: Article (Journal)
Uncontrolled Keywords: Mobile money, intention, financial inclusion, Micro entrepreneurs
Subjects: T Technology > T Technology (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Dr Dzuljastri Abdul Razak
Date Deposited: 18 Apr 2023 09:17
Last Modified: 18 Apr 2023 09:17
URI: http://irep.iium.edu.my/id/eprint/104487

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