EFFECT OF CASHLESS POLICY ON SMALL AND MEDIUM BUSINESS IN NIGERIA


EFFECT OF CASHLESS POLICY ON SMALL AND MEDIUM BUSINESS IN NIGERIA (A case study of selected SMEs in Edo State)   

 ABSTRACT

This study was intended to examine the effect of cashless policy on Small and medium businesses in Edo State. This study was guided by the following objectives; To determine the characteristics of small and medium businesses in Edo State, To analyze the challenges that has hindered the adoption of cashless policy by small and medium businesses in Edo State.

The study employed the explanatory/survey design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the Chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 50 small scale business owners in Benin City, Edo state. The study findings revealed that the effect of cashless policy on small and medium businesses in Edo state makes payment convenient for businessmen; reduces the cost of transaction; ensures security of the SMEs; helps the SMEs control reckless spending, though it will lead to high interest rate. 

The outcome of this study will educate the managers of small and medium business and the general public on the effect of cashless policy on SMEs recommending coping strategies to ensure profitability with the use of the modern technology.

TABLE OF CONTENTS

Title Page - - - - - - - - - i

Approval Page - - - - - - - - ii

Declaration - - - - - - - - iii

Dedication - - - - - - - - - iv

Acknowledgement - - - - - - - v

Abstract - - - - - - - - - vi

Table of Contents - - - - - - - vii

CHAPTER ONE – INTRODUCTION

1.1Background of the Study-----

1.2Statement of General Problem----

1.3Objective of the Study------

1.4Research Questions------

1.5    Hypothesis   -      -      -      -      -      -      -        -        -        

1.6Significance of the Study-----

1.7Scope of the Study------

1.8Definition of Terms------

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1Introduction--------

2.12. Theoretical Review- - - - - - - -

2.12.1.     Rogers’ Diffusion Theory- - - - - -

2.13.  Empirical Review- - - - -       - - -

CHAPTER THREE – RESEARCH METHODOLOGY

3.1 Introduction - - - - - - - - -

3.2 Research Design - - - - - - - -

3.3 Area of the Study - - - - - - - -

3.4 Population of Study - - - - - - - -

3.5 Sample size and Sampling Techniques - - - - -

3.6 Instrument for Data Collection - - - - - -

3.7 Validity of the Instrument - - - - - - -

3.8 Reliability of the Instrument - - - - - -

3.9 Method of Data Collection - - - - - - -

3.10 Method of Data Analysis - - - - - - -

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.0 Introduction - - - - - - - - -

4.1 Data Presentation and Analysis - - - - - -

4.2 Characteristics of the Respondents - - - - -

4.3 Data Analysis - - - - - - - - -

4.4 Testing Hypothesis - - - - - - - -

4.5 Summary of Findings - - - - - - - -

4.6 Discussion of Findings - - - - - - -

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction - - - - - - - - -

5.1 Summary - - - - - - - - - -

5.2 Conclusion - - - - - - - - - -

5.3 Recommendations - - - - - - - -

References ----------

Appendix - - - - - - - - - -

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

There have been a consistent agreement in the body of extant literatures (Daasi, 2012; Nelson & nelson, 2010; Gboski, Joshua & Stephen, 2007) that small and medium scale enterprises have the tendency to improve the economy of any nation through job creation and increased flow of finance to the economy calls for policy formulation and implementation that will enhance its growth and performance. However, the recent introduction of cashless policy by the central bank of Nigeria (CBN) has relegated SMEs to a characterization of what is described as the declining glory of the sector. This is evident in SMEs performance, growth and operation, especially in rural areas. 

The situation is more disturbing when compared with what other sectors (with lesser economic implication) of the economy has been able to achieve. Studies have also described the situation by showing a high correlation between access to finance and operations, performance and growth of SMEs. Hence, if the goals of SMEs which is widely acclaimed by researchers (Daasi, 2012; Nelson & nelson, 2010) as a boast to the economy will be achieved, then the development and enhancement of the performance, operations and growth of SMEs should be vigorously pursued.

The growth of SMEs in Nigeria is a product of availability of finances and effective utilizationof mechanism which enhances their performance, operation and growth in terms of execution of transaction. Thus, inability to accomplish the foregoing could hinder the growth of SMEs especially with the recent introduction of cashless policy which calls for internet and online banking, the use of Automated Transfer Machine (ATMs), etc., makes the situation even more disturbing for SMEs especially those operating in the rural areas due to the proximity, lack of awareness and knowledge, access to Information andCommunication Technology (ICT) (Ebepanipre&Oyuoyo, 2013; James, 2012; Olajide, 2012).

The description of SMEs as a business that utilize average trading capital and the largest number of participant operating as the lowest strata of the economy, could make the introduction of the cashless policy not only a plaque to the operators, but also a burden to the economy. 

With the advent of Information Technology and the internet, the monetary system is taking a new swing intousing electronic money as a legal tender for exchange. Several literatures have pointed out the emergence of acashless economy where the present legal tender (which is paper money and coins) is replaced with electronicmoney. This initiative has become a global trend. Bonugli (2006) noted that bank notes and coins are graduallyphasing out as mode of payment for transactions as more systems present themselves to be viable and betteralternatives across the world.

Nigeria is not left out of this trend as the cashless policy is the latest innovation of the Central Bank of Nigeria,among its numerous efforts to reform the Nigerian financial system. There was the recapitalization agenda, thenthe redenomination of the Naira, the non-interest (Islamic) banking and most recently the cashless economy.While some of these policies made sense to the citizens, others were treated with discord. Though as always withany change attempt, resistance is inevitable. Amidst the skepticism of Nigerians, the recapitalization agendawhich kicked off in 2005 has been successful. The redenomination of the Naira and the Islamic banking wereflogged with critics. For instance, the redenomination of the Naira was judged to be counter-productive while theinitiators of the non-interest banking concept are accused of masking under some hidden agenda (Akhalumehand Ohiokha, 2012).The cashless policy has not escaped such critics, hence the need to address the concerns of the citizenry if thepolicy must survive. The anticipated benefits of the adoption of the cashless economy have been greatly stressedbut people have not been convinced that the policy is for the good of all especially the SMEs which contributes majorly to the economy.

1.2 STATEMENT OF THE PROBLEM

The problem of this study therefore, is to investigate if the introduction of cashless policy has any impact on Small and medium business in Nigeria with focus on Edo State. Specifically, emphasis will be placed on: determining the characteristics of small and medium businesses in the study area; identifying the challenges that have hindered the adoption of cashless policy by small and medium businesses in the study area; investigating if cashless policy has in any way enhanced the growth of small and medium scale businesses in the study area; examining the impact of cashless policy on the performance of small and medium scale businesses in the study area and finally, make evidencebased recommendations on how the adoption of cashless policy could be enhanced in other to reposition small and medium scale businesses to boost the economy of Nigeria. 

1.3 OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1. To examine the effect of cashless policy on Small and medium businesses in Edo State.

2. To determine the characteristics of small and medium businesses in Edo State.

3. To analyze the challenges that has hindered the adoption of cashless policy by small and medium businesses in Edo State.

1.4 RESEARCH QUESTIONS

1. What are the effect of cashless policy on Small and medium businesses in Edo State?

2. What are the characteristics of small and medium businesses in Edo State?

3. What are the challenges that have hindered the adoption of cashless policy by small and medium businesses in Edo State?

1.5 HYPOTHESIS

HO: There is no significant relationship between cashless policy and economic development of SMEs in Edo State

HA: There is significant relationship between cashless policy and economic development of SMEs in Edo State

1.6 SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1. The result from this study will educate the managers of small and medium business and the general public on the effect of cashless policy on SMEs recommending coping strategies to ensure profitability with the use of the modern technology.

2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area

1.7 SCOPE/LIMITATIONS OF THE STUDY

This study is limited to SMEs in Edo State. It will also cover the relationship between cashless policy and economic development of SMEs in Edo State.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

REFERENCES

G.L.K. Daasi, Traditional financial institutions and rural enterprises in Ogoni land of Rivers state. Unpublished seminar paper, Department of Economics, University of Uyo, Uyo – Nigeria, 2012.

E.E. Nelson, and I.E. Nelson, Microcredit programmes and poverty alleviation in rural Nigeria: A case of AkwaIbom State, International Journal of Economic Development Research and Investment, 1(2&3 ), 2010, 168-180.

A. Gboski, A. Joshua, and T. A. Stephen, The Role of “Susu” A Traditional Informal Banking System in the Development of Micro and Small Scale Enterprises (MSEs) in Ghana, International Business & Economic Research Journal, 6(14), 2007

G.M. Ebipanipre, and K.O. Uyouyo, An empirical analysis of the benefits of cashless economy on Nigeria’s economic development, Research journal of finance and accounting, 4(17), 2013, 11-16.

A. O. James, The Acceptance of E-banking by Customers in Nigeria, World Review of Business Research, 2(2), 2012, 6-8.

Akhalume P.B., and Ohiokha F. (2012), “Nigeria’s Cashless Economy: The imperatives”. International Journal of Management & Business studies. 2(2):31-37

Bonugli Paul (2006), The Cashless society: Increased Usage of Card-Based Payment Systems”, Electronics and Computer Science, University of South Ampton.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.