Effects of Cash Crunch on Small and Medium Scale Enterprises in Delta State

Abstract

Small and Medium Scale Enterprises (SMEs) sales turnover has been drastically affected because customers are now prone to down their expenditures due to the effect of the cashless policy in Nigeria. This study examines the effects of the cash crunch on the sales of SMEs in Delta State. A descriptive survey design was adopted while one hundred and ten copies of research questionnaires were distributed to SMEs owners. However, eighty-seven copies of the retrieved questionnaires were found relevant to the analysis. The result indicates that the cash crunch had positive and statistically significant relationship with the sales of SMEs at a 0.05 level of significance. The study recommends that government and the Central Bank of Nigeria (CBN) should compel commercial banks to invest in enhancing network bandwidth to improve electronic transfers and encourage electronic money usage.
 Keywords: Cash Crunch, Small and Medium Scale Enterprises, Cashless Policy, Electronic Transfer, Electronic Money.