INFLUENCE OF AGENCY BANKING ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN DOHA QATAR

Abstract

This study examined the influence of agency banking on the performance of small and medium enterprises (SMEs) in Doha, Qatar. The objectives were to assess how accessibility to agency banking services influences SME performance, determine the effect of cost savings, and examine the role of financial inclusion in enhancing SME growth. A descriptive survey design was employed, targeting 1,155 SMEs with a sample size of 384 participants, including SME owners, managers, agency banking representatives, and financial experts. Stratified sampling was used, and data were collected through questionnaires, interviews, and observations. Descriptive statistics such as frequencies, percentages, and charts summarized the data, while inferential statistics - including multiple regression analysis - were applied using SPSS. Findings revealed that accessibility to agency banking significantly enhanced SME performance (β = 0.298, p < 0.001). Cost savings also had a positive effect (β = 0.201, p = 0.002), while financial inclusion emerged as the strongest predictor of SME performance (β = 0.412, p < 0.001). The study concluded that agency banking improves SME performance by enhancing accessibility, reducing costs, and deepening financial inclusion, with financial inclusion being the most influential factor for growth and sustainability. The study recommended strengthening agency banking networks for wider accessibility, promoting cost-effective digital solutions, and expanding financial literacy programs to enable SMEs to utilize financial services effectively. Policymakers were further encouraged to develop supportive regulatory frameworks that enhance financial inclusion and provide affordable credit and tailored products for SMEs.