A survey of factors affecting operation efficiency of small entrepreneurs: The case of M-pesa outlets in Nairobi, Kenya

Abstract

The study focused on the factors affecting operation efficiency of small entrepreneurs. The study was based on all M-pesa outlets in Nairobi. The main aim was to investigate the effects of customer experience in operational efficiency of M-Pesa outlets in Nairobi. Other aims were, to find out the effects of cost of transactions on operational efficiency of M-Pesa outlets, to determine the effects of service delivery on the operational efficiency of M-Pesa outlets, to establish the influence of access to capital on operational efficiency of M-Pesa outlets and to investigate the extent to which training and business management skills in MPesa outlets affect their operational efficiency. Causal research design was used for this study and random sampling was used to come up with a sample from the target population consisting of M-Pesa agents operating in Nairobi region. Questionnaires were used to collect the primary data and the final analysis was done using statistical package for social science (SPSS version 17). Frequencies (percentages proportions) and descriptive statistics (the mean, median, percentages and standard deviation) were used to describe data collected. The findings of this study found that the experience of the customers has led to the improvement of the competitive abilities of the M-Pesa agents and increased value of the services received by the customers. The quality of services of the M-Pesa outlets are high and this has led to effectiveness and efficiency in the processing of the elements and service delivery. The accessibility of capital by the M-Pesa operators increases their profitability. According to the study findings the training and experience of the operators influenced the efficiency of the M-Pesa agents. The findings of this study will go a long way in assisting the government to formulate good policies for the expansion of the small and medium enterprises sector.