The Influence of Perceived Risk on the uptake of Mobile Money Services by SMEs Operations in Karagwe District, Tanzania

Mobile money services (MMS) usage through mobile phones and other ICT tools has increased with time and dramatically pave the way in business communication among Small and Medium Enterprises (SMEs) in Tanzania. Some of SME operators in Karagwe District are escaping from MMS usage due to perceived risk associated with financial communication and hence pulls down its usage. The growth of MMS and perceived risk embodied in it is taking a crucial part in business communication. A study sought to analyse the influences of perceived risk on MMS usage to support SME business undertaking. Perceived risk theory was reviewed and become a corners stone for this study. It can be recalled that, risk is the stake in use and individual feeling which is subjected in certainty. Variables in mobile MMS usage including financial risk, performance risk and SME business operation were identified and measured using quantitative techniques. Questionnaires were designed to collect data from all respondent. Data were collected from 154 runners of micro, small and medium enterprises using simple random sampling method. Data were analysed by sing SPSS version 22 in which descriptive analysis were used to analyses demographic data while factor analysis were used to test the study hypothesis. The study found that financial and operational risks are negatively and significantly influences MMS usage in business operation. This study highlights remedial action for players of MMS in business operation which will facilitate to mitigate perceived risk and enhance smooth running SME business orientation. Furthermore, the study recommends that the Government should institute the developed ICT policies and other legislation to enforce MMS usage security and regulate its uptakes.