An Assessment of The Impact of Digitalization of Microcredit Services on Micro and Small Enterprises

Authors

  • A. Kingu College of Business Education, Tanzania.
  • W.C. Gomera College of Business Education, Tanzania.

DOI:

https://doi.org/10.26437.ajar.03.2022.9

Abstract

Purpose: The study assessed the impact of digitalization of microcredit services among micro and small enterprises.

Design/Methodology/Approach: The probability sampling technique used in obtaining the sample of 125 respondents. Data were collected and descriptive analysis was used in finding the frequencies, percentages and mean.

Findings: The study results revealed that the digitalization of microcredit services is beneficial to micro and small enterprises, however, these enterprises face challenges in accessing digital microfinance services

Research limitation/Implications: The study contributed to the approach by research questions and theories.  The research questions focused on the benefits, challenges and awareness of digital microcredit services to micro and small enterprises.

Practical implications: The study implies that digital technology in the financial industry is changing each day and as the technology changes users also need to change to cope with the situation. For that case, the financial institutions need to focus on how to help their customers in adapting to the situation so that they may proceed in providing their financial services.

Social Implications: Microfinance institutions' digital technology must be connected to their consumers both internally and externally to provide acceptable and quality services.

Originality / Value: The study recommends that there is a need for microfinance institutions to make sure that they provide privacy to customers by increasing financial security on their customers' accounts and training users of digital microcredit services.

Author Biographies

A. Kingu, College of Business Education, Tanzania.

A master's student with the  Department of Accountancy, College of Business Education, Tanzania

W.C. Gomera, College of Business Education, Tanzania.

He is a Lecturer with the  Department of Accountancy, College of Business Education, Tanzania.

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Published

2022-04-04

How to Cite

Kingu, A., & Gomera, W. (2022). An Assessment of The Impact of Digitalization of Microcredit Services on Micro and Small Enterprises. AFRICAN JOURNAL OF APPLIED RESEARCH, 8(1), 121–137. https://doi.org/10.26437.ajar.03.2022.9