Mobile money adoption and SME performance: Evidence from Sunyani Municipality, Ghana

This study examines the impact of mobile money adoption on SME performance in Ghana's Sunyani municipality using a quasi-experimental difference-in-differences design with primary survey data from 150 SMEs. Results demonstrate that mobile money adoption significantly enhances both sales performance (0.625-point increase on a 5-point scale, p < 0.01) and working capital management (0.564-point improvement on a 4-point scale, p < 0.01), with adopters being 42.6 percentage points more likely to experience sales growth and 51.5 percentage points more likely to report improved financial management. Heterogeneity analysis reveals stronger effects for manufacturing and diverse businesses, while mechanism analysis indicates value creation through enhanced cash flow management, supply chain efficiency, and operational convenience. The findings provide robust causal evidence that mobile money adoption represents an effective tool for SME development in emerging economies. Keywords: Mobile Money, SME Performance, Financial Inclusion, Digital Finance, Difference-in-Differences.