Impact of Cashless Policy on Micro and Nano Businesses in Osun State Ajoloko, Kehinde Christianah 22 / Bam/ 2785 a Research Project Submitted to Department of Business Administration and Management Faculty of Management Studies Osun State Polytechnic.

ABSTRACT
Cashless economy does not mean a total elimination of cash,; it is a financial environment
that minimizes the use of physical cash by providing alternative channel for making
paymenu. The objectives of this study include; to examine the effect of cashless policy on
Micro and Nano Businesses in Osun State; to determine the characteristics of Micro and
Nano Businesses in Osun State; to analyze the challenges that have hindered the adoption
of cashless policy by Micro and Nano Businesses in Osun State; to examine the influence
of internet banking on the performance of Micro and Nano Businesses in Osun State,; and
to evaluate the influence of mobile banking on the performance of Micro and Nano
Businesses in Oszun State. The survey was carried out through the administration of
questionnaire on business owners ofmicro and nano businesses in the study area. Due to
the introduction of e-payment by Osun State government, Micro dnd nano businesses have
started utilizing electronic based payment in their day to-day payments and business
activities through Point of Sale Terminals (POS), GSM, Mobile Banking, and Automated
Teller Machine (ATM). This signifies that an efficient and modern payment system
positively correlated with economic development and it is a key enable of the economic
growth. The sources of data is primary source obtained through the administration of
structured question to the sampled respondents. The sample size was sixty (60) drwn
from a population of 265. Both descriptive and inferential statistical techniques were
employed for the analysis of the data. Findings from the study showed that there is
significant relationship between cashless policy and economic development; also there is
significant relationship between point of sale and development of Micro and Nano
Businesses. The study recommends that since these micro and nano businesses are
characterized by a small amount of capital which hindered their ability to adapt cashless,
it is therefore recommended for the government to embark on viable financial
programmes and policies that will make them productive. Government should embark on
educating and ICT training programmes in both urban and rural areas so that micro and
nano business owners could have the basic knowledge that would enable them to carry
their business activities electronically as required by the policy.