Determinants of Implementing Demonetization in Micro and Small-Scale Enterprises in Ethiopia

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.