Abstract

Though it is contended that mobile value added services (MVAS) can help growth of small and microenterprises, few empirical studies have investigated the drivers of MVAS adoption particularly by women entrepreneurs. Our study fills this important gap in the literature by specifically focusing on women micro-enterprises (WMEs) in a Pacific island country - Fiji. The study aims to investigate the effect of organisational and individual characteristics of the entrepreneurs on the decision to adopt mobile value added services. We also identify the supply-side constraints in the uptake of MVAS. We interviewed 74 women micro entrepreneurs and 10 providers of mobile phone services and policy makers. Age of respondents and mobile network operator used had significant positive association with the decision to adopt MVAS. Many policy barriers, infrastructure constraints and interoperability issues were found to hinder the growth of MVAS in Fiji. Access to finance, insurance, and capital were the three major challenges faced by respondents who desired that business mentoring and information needs to be made available through mobile phones as a top priority. We conclude that appropriate policy framework backed by supporting infrastructure to build high equilibrium ecosystem would help rapid adoption of MVAS in Fiji.

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