Digital financial inclusion and SME performance in post-pandemic Freetown: Evidence from mobile money adoption and business resilience

Abstract

This study examines the relationship between digital financial inclusion, particularly mobile money adoption, and small and medium enterprise (SME) performance in Freetown, Sierra Leone, during the post-pandemic recovery period (2021-2024). Using a mixed-methods approach with survey data from 385 SMEs across six municipal districts, the study employs multiple regression analysis and structural equation modeling to investigate how digital payment systems influence business resilience, revenue growth, and financial sustainability. The study findings reveal that mobile money adoption is positively associated with SME revenue growth (β = 0.412, p < 0.001) and operational resilience (β = 0.368, p < 0.001), with this relationship moderated by owner education level and business formalization status. The study contributes to the growing literature on financial inclusion in West Africa and provides empirical evidence for policymakers seeking to enhance SME development through digital transformation initiatives in post-conflict economies.