Improving the resilience of SMEs in times of crisis: The impact of mobile money amid Covid‐19 in Zambia. (6th December 2021)

• Record Type: Journal Article
• Authors: Nan, Wenxiu (Vince); Park, Minseok
• Other Names: Bandyopadhyay Sanghamitra guestEditor.; Vadlamannati Krishna guestEditor.
• Is Part Of: Journal of international development. Volume 34:Number 4(2022)
• Page Start: 697
• Page End: 714
• Publication Date: 2021-12-06
• Subjects: Covid‐19 -- Mobile money (MM) -- resilience -- sales decrease -- SMEs -- Zambia; Economic development projects -- Developing countries -- Periodicals; Developing countries -- Economic policy -- Periodicals; Developing countries -- Foreign economic relations -- Periodicals; Economic development -- Periodicals; 330.91724
• DOI: 10.1002/jid.3596
• Languages: English
• ISSNs: 0954-1748

Abstract

Abstract: This study investigates the impact of mobile money (MM) on SMEs' resilience and the associated business outcome in developing countries amid Covid‐19. Despite the potential of MM to improve SMEs' resilience, little evidence has been documented. Using Enterprise Survey data in Zambia, we show that SMEs are more likely than large firms to experience catastrophic sales decline, reflecting their inherent vulnerability. Further analysis reveals that this unfavourable effect can be effectively counteracted when SMEs incorporate MM into daily business. An important policy implication is that the use of digital technologies should be a key element of policy responses to Covid‐19.