THE EFFECT OF CASHLESS ECONOMY ON THE PERFORMANCE OF SMALL SCALE ENTERPRISES IN ANAMBRA STATE

Abstract

This study examined how small-scale businesses in Anambra State fared operationally in a cashless economy. Based on the Diffusion of Innovation Theory (DIT), there was an extensive evaluation of relevant conceptual, theoretical and empirical literature. The study's dependent variable was manufacturing firms' performance whereas the independent factors included internet banking, automated teller machines, mobile banking and point of sale services. The study population consisted of 2093 persons who worked for industrial firms in the South-East area of Nigeria. The research design used in the study was a descriptive survey. 404 respondents made up the sample size, which was calculated using the formula by Borg and Gall (1973). The performance of small businesses in Anambra State was shown to have significantly improved due to the presence of automated teller machines, point of sale systems and online banking. The study found that the performance of manufacturing firms significantly improved by a cashless economy. Therefore, it was suggested that policymakers and the central bank evaluate policies on a regular basis to straighten out any undefined positions. Banks must to launch a comprehensive awareness campaign and educate the public about the advantages of a cashless policy for efficient business operations, particularly for industrial companies. Banks should invest in ATMs that are user-friendly, dependable, quick, provide confidentiality, have reasonable fees and let users make deposits in addition to putting sufficient security measures in place to stop fraudulent transactions.