The Role of Fintech on the Performance of Small and medium Manufacturing Enterprises in Tanzania A Case of Ilala Municipality

Abstract

The study looked at how FinTech affects the performance of Tanzania's Small and Medium Enterprises. The research was led by three specific objectives, the first of which was to assess the impact of mobile money services on the performance of Tanzanian manufacturing SMEs. The second specific objective was to look into the impact of online banking on Tanzanian manufacturing SMEs' performance. The third specific objective was to analyze the impact of digital loans on Tanzanian manufacturing SMEs' performance. The study was conducted in the Ilala Municipality in Dar es Salaam. A descriptive research design was used to conduct the investigation. The population of the study was SMEs in and around Ilala, with a sample size of 284 SMEs selected for the study. To obtain data, SMEs owners and managers were given a questionnaire. Descriptive statistics and multiple regressions were used to analyze the data collected. The findings indicate that, all three independent variables (mobile money services, online banking, and digital lending) were found to have a positive and statistically significant influence on the prediction of the dependent variable, SMEs Performance (B=0.450 p=0.000), (B=0.229 p=0.000), and (B=0.344 p=0.000), respectively. Therefore, the study recommends that SMEs should enhance the use of mobile money services for their business. Moreover, it is important that they make use of mobile money services for sales, purchases, bills payment and savings. Also, SMEs should enhance the use of mobile banking for their business operations. Moreover, the opportunity to access credits from the digital platforms should also be used by SMEs. The use of credit facilities from the digital platforms will be useful for them.