Fintech Adoption and Performance of Small and Medium Enterprises (SMEs), Uganda: A Case of Mukono Town, Uganda

Abstract

This present study investigates how the adoption and performance of FinTech have impacted SMEs in Mukono. So far, SMEs are still at a low awareness level about FinTech and have financial constraints. The paper is therefore founded on the subsequent research objectives; To identify the key drivers of fintech adoption among SMEs, to explore the challenges faced during fintech adoption among SMEs E, to analyze the effects brought about by fintech adoption among SMEs, and to examine the connection between SME financial performance the adoption of fintech. The Unified Theory of Technology Acceptance and Use UTAUT2 the Technology Acceptance Model TAM directed the theoretical frameworks. It used a quantitative approach to data analysis and a survey design. The study population consisted of forty-five SMEs that were active in Mukono. To collect data, a questionnaire was used with a sample size of thirty respondents. In terms of data gathering, the researcher carried out the pilot study. By using Cronbach’s alpha coefficient, we made sure the data was thoroughly reviewed for reliability and validity. Descriptive statistics like percentages and frequencies were used in the analysis. Tables and figures were used to present these. With a correlation coefficient of 0.873, significant at p < 0.01, the attributes of fintech adoption and SME performance showed a positive and strong correlation. Regression study revealed that, with a standardized coefficient of Beta = 0.381, attitudinal traits had the largest impact on performance followed by behavioral attributes Beta = 0.306, adoption attributes Beta = 0.272 and intention to use Beta = 0. 191. Thus, it suggests that creating a favorable attitude towards the adoption of fintech in the operations of SMEs is indispensable to improving their performance. In the end, fintech has been found to have a significant impact on improving the performance of SME’s. More significantly, it was found that two key behavioral characteristics perceived utility and simplicity of use were high end adopters of fintech. However, a positive outlook on fintech’s and strong intents to employ them were so significant that they ended up playing a significant role in enhancing the performance of SMEs. The study also takes into account essential elements that will promote or enable widespread dissemination among SMEs, such as perceived utility and ease of use.