THE EFFECT OF CASHLESS ECONOMY ON THE PERFORMANCE OF SMALL SCALE ENTERPRISES IN ANAMBRA STATE
Keywords:Internet Banking, Automated Teller Machine, Point of Sale
This work examined the effect of cashless economy on the performance of small scale enterprises in Anambra State. The study reviewed relevant conceptual, theoretical and empirical literature, and it is anchored on Diffusion of Innovation Theory (DIT). Internet banking services, automated teller machine, mobile banking services, and point of sale services were employed as the explanatory/independent variables while performance of manufacturing firm were employed as dependent variable. The study adopted descriptive survey research design. The population of the study was 2093 which comprised the staff of the manufacturing firm enterprises in the south-East, Nigeria. Sample size of four hundred and four (404) respondents was selected for the study using Borg and Gall (1973) formula. Questionnaire was employed as the main instrument for data collection. The data generated were analyzed using multiple regression analysis. It was found that internet banking services automated teller machine services and Point of sale services had a positive significant effect on the performance of small scale enterprises in Anambra State. The study concluded that cashless economy has a positive significant effect on the performance of manufacturing firm. It was recommended therefore that Central bank and policy makers should have periodic review of policies to iron out grey areas. Banks should embark on intensive awareness campaign and sensitization of the citizenry on the benefits of cashless policy on effective business performance especially the manufacturing firm. Banks should put adequate security mechanism in place to forestall fraudulent practices, invest in ATMs that are easy to use; reliable, works with speed, guarantees privacy, affordable charges, and ones that allow customers to make deposits.