Electronic accounting applications in micro-enterprises: Challenges and impact on financial inclusion

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Mohammad K. Shbeilat ORCID logo, Mohammad Eid Al-Hajaia ORCID logo


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This study provides insights into current perceptions and possible improvements for the use of electronic accounting applications (EAAs) by micro-enterprises, in addition to identifying the impact on financial inclusion, which aims to promote the use of financial and banking services among various groups of society (Central Bank of Jordan [CBJ], 2018). A sequential exploratory mixed-method was adopted in this research (Creswell & Clark, 2017) where the qualitative phase was conducted first to help gather in depth information about possible factors influencing the non adoption of EAAs in addition to aiding in the design of the quantitative instrument, followed by the quantitative phase to test the posited catalysts that affect the adoption of EAAs by micro-enterprises. Thematic analysis revealed that costs associated with the use of EAAs and the need for qualified personnel to operate EAAs along with a lack of interest in and awareness of e commerce culture were the main reasons for the lack of adoption and use of EAAs. On the other hand, the quantitative analysis showed a set of measures that promote the use of EAAs, in addition to a positive relationship in increasing the scope of financial inclusion. This study presents a number of policy implications for regulators such as 1) the central bank and social security as expanding financial inclusion means adequately providing financial support to affected enterprises; 2) Ministry of Digital Economy and Entrepreneurship to sponsor the development of customized, free, and easy-to-use accounting applications; 3) activating the social responsibility of local universities in promoting the financial culture through holding free training courses for micro-enterprises.

Keywords: Electronic Accounting Applications, Micro-Enterprises, Financial Inclusion, Exploratory Mixed-Method, Universities Social Responsibility

Authors’ individual contribution: Conceptualization — M.K.S.; Methodology — M.K.S. and M.E.A.-H.; Formal Analysis — M.K.S.; Investigation — M.K.S. and M.E.A.-H.; Resources — M.K.S. and M.E.A.-H.; Writing — Original Draft — M.K.S. and M.E.A.-H.; Writing — Review & Editing — M.K.S.; Visualization — M.K.S. and M.E.A.-H.; Supervision — M.K.S.; Project Administration — M.K.S. and M.E.A.-H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G21, M41, M48, O12

Received: 08.03.2022
Accepted: 03.08.2022
Published online: 05.08.2022

How to cite this paper: Shbeilat, M. K., & Al-Hajaia, M. E. (2022). Electronic accounting applications in micro-enterprises: Challenges and impact on financial inclusion. Journal of Governance & Regulation, 11(3), 165–178. https://doi.org/10.22495/jgrv11i3art14