IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg213.223

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Impact of Financial Technology on Micro Small and Medium Enterprises (MSMEs): Evidence from Adamawa State-Nigeria

Abdullahi Ahmed (Ph.D) and Sadiq Abubakar Umar

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Abstract

This study investigates the impact of Fintech Adoption (FA) on the growth and performance of Micro, Small, and Medium Enterprises (MSMEs) in Adamawa State, Nigeria. A descriptive survey design was employed, gathering data from 310 MSMEs across various sectors, including agriculture, manufacturing, and services. The data was analyzed using correlation and regression analyses to determine the relationships between the variables. The study reveals that fintech adoption positively and significantly impacts MSMEs growth and employee retention, indicating that fintech adoption is a crucial driver of business success in this region. However, the effects of basic fintech awareness (BFA) and customer base (CB) were mixed, suggesting the need for tailored fintech strategies based on specific business characteristics. The study recommends that policymakers and business support organizations in Adamawa state promote fintech adoption through targeted training programs and partnerships with fintech providers. Additionally, support should be provided to MSMEs in managing larger customer bases and leveraging fintech for sustainable growth. The study concludes that fintech adoption plays a significant role in enhancing MSME growth and competitiveness in Adamawa state. However, further research is needed to explore additional factors influencing MSMEs success and to develop more comprehensive models for a better understanding of the dynamics at play.

keywords:

Financial Technology, Fintech Adoption, Micro Small and Medium Enterprises

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