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| Analysis of Purchasing Efficiency of Young Entrepreneurs in Kenya: A Digital Banking Perspective
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Andolo dan Ojijo, Dr. Benjamin Owuor Ombok
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Abstract:
The Kenyan government's push for a cashless economy has led to the adoption of digital banking services by businesses. In particular, the government has implemented policies such as the cashless payment system for service provision in various government departments, which has also encouraged the use of digital platforms in business transactions. However, young entrepreneurs in Kenya especially those in the medium size enterprises(MSE) still lack financial literacy and technical skills that would enable them to make informed financial decisions and take advantage of digital banking services. This, according to previous surveys, has contributed greatly to purchasing inefficiencies leading to increased costs and decreased productivity, affecting the profitability of the business. The purpose of this research was to investigate how digital banking impacts the purchasing efficiency of young entrepreneurs who manage medium-sized businesses in Kenya. The research employed a correlational design and covered all counties in the country. A structured questionnaire was developed using Microsoft Forms and was purposively administered to the target respondents. The results showed that digital banking practices adopted by medium size business enterprises positively and significantly contributed to firm's purchasing efficiency. The study recommends that the government should provide financial incentives to medium-sized enterprises such as tax rebates, subsidies and capacity building programs, to incentivize the adoption of digital banking services and optimize purchasing efficiency of the MSE's.
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