Does mobile financial services adoption mitigate financial ?vulnerability of small enterprises?

Purpose: This study investigates the impact of mobile financial services (MFS) adoption on the financial vulnerability of small businesses in Benin, with a focus on the moderating role of government support.Method: Data were collected through a survey of 316 small business owners in Benin. We analyze the data using structural equation modelling (SEM) and analysis of variance (ANOVA). The reliability and validity of the measurement model were confirmed through exploratory and confirmatory factor analyses.Results: The results reveal that mobile financial services adoption significantly reduces the financial vulnerability of small businesses. Furthermore, there is a significant difference in term of financial vulnerability between those who perceived government support and those who did not, but no significant difference in terms of mobile financial services adoption. Government support not only directly mitigates financial vulnerability but also enhances the positive effects of mobile financial services adoption on financial vulnerability. The moderating effect of government support indicates that firms benefit more from multi-sector financial services when these are complemented by institutional assistance.Originality/Relevance: This study contributes to the literature by integrating the roles of modern financial technologies and government interventions in addressing the financial challenges of small businesses in a developing country context. It provides empirical evidence on the synergistic effects of mobile financial services and government support, offering practical insights for policymakers and financial institutions that aim to promote financial inclusion and business resilience.