IMPACT OF POS ON PROMOTING ENTREPRENEURSHIP IN NIGERIA
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF POS ON PROMOTING ENTREPRENEURSHIP IN NIGERIA
CHAPITER 1
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The 24-hour operation of individual commercial organisations and governments has undergone many changes as a result of the rapid development of electronic banking. Financial transactions have become simpler and more accessible with the advent of mobile banking and Point of Sale machines as a byproduct of electronic banking.
For open-minded businesses, the rising demand for rapid financial transactions outside of a bank setting has opened up new business prospects.
Entrepreneurship, according to Ademiluyi (2006), is the process of using readily available capital in whatever form for commercial ventures in an open and free market economy with the only objective of creating something new that meets requirements.
According to Ifegbo (2002), entrepreneurship is best viewed as a competency in creative talents that can lead a person to be self-sufficient, autonomous, and productive.
It is important to highlight that the majority of small and medium-sized enterprises run by entrepreneurs have POS terminals to enable cashless transactions. A portable device used to accept bank card payments for goods and services is called a point of sales (POS) terminal.
It enables you, the cardholder, to use debit or cash cards to access money and information in your bank account in real time online. Other small business owners even go so far as to provide their clients the option of cashback, which only allows them the chance to profit from the debit or credit transaction they provide.
A credit card perk known as cash back gives the cardholder’s account a tiny proportion of the amount they have spent on transactions (Investopedia). Most cashback compensation rates fall between 1% and 3% of a transaction, while some might reach 5%.
But anytime this cashback is processed through a business POS terminal, the account terminal is rewarded, giving the business owner an advantage to generate profits aside from those from the product (Ugwueke C. 2014).
However, the convenience of using a mobile payment system to pay for products and services from any point of transaction has grown to be a crucial concern as this new environment has opened up business opportunities for Nigerian entrepreneurs who are business-minded. In light of this, this study will look at how POS has influenced the growth of entrepreneurship in Nigeria.
1.2 STATEMENT OF THE PROBLEM
Recently, the Nigerian banking sector has been characterised by onerous procedures that make it challenging for account holders to retrieve their money. It is made more difficult for those who want to conduct any business in the banking environment by the unpleasant lines at ATMs and the pointless limits on the number of people who can be attended to by employees.
Due to the high rate of unemployment in the nation, entrepreneurs took advantage of these gaps and created POS businesses to make the most of the chance. The CBN cashless policy allowed for bank industries to establish their own POS terminal agents in support of this new business trend.
The volume, breadth, and security of business in Nigeria will considerably improve with the cashless economy, which aims to execute transactions and other payments electronically.
This new development has considerably aided entrepreneurs in the nation, especially small and medium business owners, in expanding their firms both domestically and abroad.
1.3 OBJECTIVES OF STUDY
The overall goal of this study is to investigate how POS affects encouraging entrepreneurship in Nigeria. In particular, the investigation will
Consider the role that POS plays in financial transactions.
Identify the difficulties in developing a POS business.
Examine whether POS has encouraged entrepreneurship.
1.4 THE MEANING OF THE STUDY
The general public, especially individuals with an entrepreneurial potential, will find this study to be useful. It will provide prospective business owners with first-hand knowledge of the difficulties they are likely to encounter when trying to launch a POS operation and advice on how to prepare for them.
Additionally, it will help young people who are unemployed realise how important it is to start a POS firm while looking for white-collar employment. Finally, this study will be pertinent for further academic research in this area and contribute to the general body of knowledge serving as a reference material.
Financial institutions will be made more aware of the need to encourage interested entrepreneurs to set up POS by making the procedures less burdensome for them.
1.5 DEFINITION OF THE STUDY
The overall goal of this study is to investigate how POS affects encouraging entrepreneurship in Nigeria. The study will specifically look at the value of POS in financial transactions. It will reveal the difficulties in starting a POS company.
It will look into whether POS has encouraged business growth in Nigeria. The focus of this study, however, is restricted to a few key commercial locations in Calabar Municipality, Cross River State.
1.6 RESEARCH QUESTIONS
The study is guided by the following research questions:
What role does POS play in completing financial transactions?
What are the difficulties in starting a POS business?
Do you believe that POS has encouraged business growth in Nigeria?
How much does the POS industry support entrepreneurship in Calabar?
1.7 LIMITATIONS
Challenges that were faced during the study included the following, but weren’t limited to, them. which are
Financial restraint: A researcher’s ability to find relevant materials, literature, or information and to collect data (through the internet, a questionnaire, and interviews) is often hindered by a lack of funding.
Time is a problem that also poses a constraint because this research had to be completed while still fitting in with the deadlines for other academic assignments, making it impossible to carry out this study with a larger, more representative sample size.
1.8 DEFINITION OF TERMS
POS: A point-of-sale (POS) terminal is a piece of hardware used in retail establishments to handle credit card payments. It features software for reading credit and debit card magnetic strips. The moment and location at which a retail transaction is finished is known as the point of sale or point of purchase.
POS operations: Operating a POS business in Nigeria is a legal way to earn money. It is also known as the “agent banking business,” and it is an expansion of the services provided by financial institutions to make it simple to provide a variety of consumers with services.
Any person who owns a POS company is referred to as a POS agent or retailer. They act as the bank’s agents, providing banking and financial services while collecting their own commissions.
Promoting: To promote is to actively support or encourage (a cause, endeavour, etc.); to advance something.
The creation or extraction of value is referred to as entrepreneurship. Setting up a firm or enterprises involves taking on financial risks in the pursuit of a return.
Need help with a related project topic or New topic? Send Us Your Topic