Effects of Point of Sale (POS)terminal utilization on micro enterprises in Dambatta Local Government Area of Kano State, Nigeria.

Abstract

The study looked at the effects of POS utilization by micro businesses on their sales and access to some basic financial services especially micro credit which is often considered as necessary for business expansion and development. The chosen area of study is one of the rural local government areas in kano state and hence there is need to find out whether the use of POS in such a location is actually promoting the development of micro enterprises. A sample of 111 micro enterprises who utilize point of sale terminal for their transactions was used for the study. The data gathered were analyzed using multiple linear regression, logistic regression and a Tobit regression. The result indicated that POS utilization adds more to daily sales than cash sales and that the likelihood of making more sales with POS by micro entrepreneurs in the study area is largely determined by business location, type of business, volume of sales and the years of bank account holding. While the likelihood of obtaining formal credit is majorly determined by location of business. The study therefore recommends that the financial inclusion drive of the CBN should be made more intense and the internet service should be improved in the rural areas to facilitate ease of transactions by POS terminal users.