Mobile telephony, social networks and credit access: Evidence from MSMEs in Kenya

Figures & data

Table 1. Access to formal and informal credit

	Micro (%)	Small (%)	Medium (%)	Total (%)
Formal credit	8.2	33.3	0	8.41
Informal credit	8	6	0	8

Table 2. Frequencies of factor variables

Variable	Mean
Mobile banking	0.228
Mobile money	0.81
Group participation	0.588
Registration	0.236
Micro enterprises	0.992
Age of the firm	8
Sector	0.24
Muslim	0.13

Table 3. Effect of mobile telephony and social networks on MSMEs access to credit

	Formal		Informal
Variables	Base model	Margins	Base model	Margins
Number of groups	0.151***	0.0197***	0.461***	0.0626***
	(0.0545)	(0.00710)	(0.0571)	(0.00790)
Number of Groups squared	$-0.00983$	$-0.00128$	$-0.0424$***	$-0.00575$***
	(0.00692)	(0.000902)	(0.00760)	(0.00104)
Owner has mobile banking	0.582***	0.0881***	0.0703	0.00977
	(0.0892)	(0.0154)	(0.100)	(0.0142)
Owner has mobile money	0.642***	0.0605***	0.185	0.0233
	(0.213)	(0.0133)	(0.127)	(0.0147)
Small enterprise	0.170	0.0240	0.338**	0.0551*
	(0.149)	(0.0227)	(0.166)	(0.0319)
Medium enterprise	1.216***	0.275**	0.228	0.0348
	(0.390)	(0.121)	(0.559)	(0.0973)
MSME registered	0.320***	0.0453***	$-0.0873$	$-0.0115$
	(0.0923)	(0.0141)	(0.103)	(0.0132)
Sector with collateral	0.355***	0.0510***	0.457***	0.0716***
	(0.0910)	(0.0142)	(0.0883)	(0.0157)
Muslim	$-0.168$	$-0.0201$	0.153	0.0224
	(0.171)	(0.0188)	(0.128)	(0.0200)
Primary education	0.843**	0.0614***	$-0.265$*	$-0.0423$
	(0.423)	(0.0163)	(0.154)	(0.0273)
Secondary education	0.930**	0.0729***	$-0.300$*	$-0.0470$
	(0.427)	(0.0172)	(0.168)	(0.0289)
Post secondary education	1.062**	0.0928***	$-0.406$**	$-0.0598$*
	(0.435)	(0.0226)	(0.206)	(0.0316)
Age of the firm	0.0131**	0.00171**	$-0.00757$	$-0.00103$
	(0.00556)	(0.000725)	(0.00574)	(0.000780)
Constant	$-3.519$***		$-1.861$***
	(0.462)		(0.162)
Observations	2,248	2,248	2,248	2,248

Note: Standard errors in parentheses. *$p<0.1$, **$p<0.05$, ***$p<0.01$.