Abstract:
The main objective of this study is to identify the determinants of implementing demonetization in
micro and small-scale enterprises in Ethiopian in case of Lideta sub city, which is the recent
information and not well studied in our countries context. Since there is a limitation on cash
based economy which is replaced with a new advanced technology. In order to achieve the
objective of this study, the researcher employed quantitative research approach to investigate
the determinants of implementing demonetization in micro and small-scale enterprises. To
achieve this objective, this study employed explanatory research design and data was collected
from across the population at one point in time and the research question call for description of
impact, factor, challenges, contribution or opportunity of determinants of implementing
demonetization in micro and small-scale enterprises. The researcher used primary sources of
data which was collected via questionnaire. The descriptive data was analyzed using frequency
table and percentage, while logistic regression analysis was used to test the relationship between
explanatory and the dependent variables. The researcher selected sample of 315 respondents out
of 1486 total target populations by using Slovenes formula of Stratified sampling method which
enable the researcher to select the required sample from a set of strata or groups. The logistic
regression result of the study by using Statistical Package for Social Science version 25 software
revealed that, management factors, financial factors, political-legal factors, marketing factors,
and technological factors has a significant and positive effect on implementation of
demonetization in Lideta sub city of Finfine City. Finally, based up on the finding of study the
researcher suggests that, the whole concerned bodies such as financial institutions, medias,
government bodies and Micro and Small Enterprise owners should works toward expanding the
means of demonetizations since it has the functions such as cost and time saving, increase sales
volume, boost government taxes collection, reduce illegal activities and black money prevalence,
encourage technological advancements which contributes for the country’s economic growth as
a whole. Creating awareness concerning the currency demonetization and encouraging and
increasing usage of demonetization instruments, then the simple way that the society is going to
the digitalization or cash less economy were created.
