This study was carried out on the  impact of POS on promoting entrepreneurship in Nigeria using businesses in Calabar Municipal, Rivers State as case study. To achieve this 4 research questions were formulated.  The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of all the owners/manager of selected businesses in the study area. In determining the sample size, the researcher conveniently selected 65 respondents while 50 respondents were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage. The result of the findings reveals that;

the importance of POS in carrying out financial transactions are found to be; it helps in solving urgent need of physical cash,  easy deposition of money into accounts, easy transfer of cash across states in Nigeria, increases consumers buying power, and  easy payment of bills; the study also revealed that robbery, connectivity, transactional insecurity, high cost of pos terminal, power outage and transaction irregularities, among others are the major challenges in establishing POS business in Nigeria. Further more, on ways through which POS has promoted entrepreneurship in Nigeria, the study revealed that POS aids entrepreneurs in goods and financial  status overview, it provide them with in-depth analyses about customers’ buying behaviour, POS itself has served as a businesses opportunity to potential entrepreneurs, It provides detailed receipts and it aids entrepreneurs in managing their inventory and POS has to a certain favourable extent promoted entrepreneurship in Calabar. Based on the finding of the study, the researcher recommends that all the relevant authorities should ensure that there is an improvement of National security, provision of connection and network infrastructure to strengthen connectivity, digital or internet Security should be enhanced; reduction of POS terminal cost and adequate power supply, meeting the above listed will help to expose more potentials to the use POS, thereby promoting it in the society. More so, regulatory agencies should carry out enlightenment programs that will inform both customers, potential entrepreneurs and businesses on the benefits of adopting electronic payment systems, especially POS terminals.This is expected to further encourage its adoptability and usage.






The rapid development in Electronic Banking has introduced several transformations in the way individual business organizations and governments operate their businesses 24 hours each day. With the introduction of mobile banking and Point of Sales terminals as an off shoot of electronic banking, financial transactions have been made easy and accessible. The increasing demand for a quick financial transaction without going to the bank environment has created business opportunities for open minded entrepreneurs.

Ademiluyi (2006) defines entrepreneurship as the process of using available capital in any form for business endeavors in an open and free market economy for the sole purpose of doing new things within a new philosophy of values and purpose of utility and quality and use which satisfies needs. Ifegbo (2002), views entrepreneurship is best understood as competency on resourceful skills capable of steering an individual to be self-reliant, independent and productive.

It is worthy to note that most small and medium scale businesses owned by entrepreneurs has a POS terminal in other to facilitate cashless business transaction. A Point of Sales (POS) Terminal is a portable machine used to accept bank cards of payments for goods and services. It allows you, as cardholder, to have real-time online access to funds and information in your bank account through debit or cash cards. Other small business entrepreneurs go as far as offering their customers opportunity for cashback, which simply gives them opportunity to make interest from the debit or credit transaction offered to their customers. Cash back refers to a credit card benefit that reward the card holder’s account a small percentage of the sum spent on purchases(Investopedia). Cashback reward percentages typically range from 1% to 3% of a transaction, but some can go up to 5%. However whenever this cashback is done via a business POS terminal, the account terminal gets the rewarded which gives the entrepreneur and edge to make additional profits aside that of the product (Ugwueke C. 2014). However the comfort of being able to pay for goods and services from any point of transaction, using mobile payment system has become a vital issue as this new terrain has created room business opportunity for business minded entrepreneurs in Nigeria.Therefor it is on this note that this study is set to examine the impact of POS on promoting entrepreneurship in Nigeria.


The Nigeria banking system recently has been characterized by cumbersome protocols making it difficult for account owners to access their funds. The annoying queues on ATM points, irrelevant restrictions of numbers of persons to be attended to by staff makes it more complicating for those who want to perform any business transaction with the bank environment. However owing to the rate of unemployment in the country, individuals who are entrepreneurs seized these lapses and maximized the opportunity by establishing POS business. In support for this new business trend, the CBN cashless policy gave access for bank industries to have their own POS terminal agents. The cashless economy which is aimed at the conduct of business and other payments electronically would significantly improve the volume, width and security of business in Nigeria. This development has greatly assist business oriented people especially the small and medium enterprises operators to grow their businesses locally and internationally thus promoting entrepreneurship in the country.




The focus of this study in general is to examine the impact of POS on Promoting Entrepreneurship in Nigeria. Specifically the study will;

  1. Examine the importance of POS in financial transactions
  2. Determine the challenges in establishing POS business
  3. Investigate if POS has promoted entrepreneurship


The following research questions guides the study:

  • What are the importance of POS in carrying out financial transactions?
  • What are the challenges in establishing POS business?
  • Do you think POS has promoted entrepreneurship in Nigeria?
  • To what extent has POS business promote Entrepreneurship in Calabar ?


This study will be relevant to the general public especially those with entrepreneurship potential. It will give potential entrepreneurs a first hand information on the challenges they are likely to face in their quest of establishing a POS business and how to brace up for it. it will also open the eyes of unemployed youths on the need to venture into POS business while waiting for white-collar job. It will sensitize financial institutions on the need to encourage interested entrepreneurs to set up POS by making the procedures less cumbersome for them finally this study will be relevant for further academic research on this field and contribute to the general body of knowledge serving as a reference material.


The focus of this study in general is to examine the impact of POS on Promoting Entrepreneurship in Nigeria. Specifically the study will examine the importance of POS in financial transactions. It will determine the challenges of establishing a POS business. It will Investigate if POS has promoted entrepreneurship in Nigeria. However, the scope of this study is delimited to selected business areas in Calabar Municipal, Cross River State.


During the course of the study challenges encountered were exclusively but not delimited to the following numerous. These are

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: time factor pose another constraint since having to cope in this research which went simultaneously within the time schedule of other academic work making it impossible to undertake this study in large more representative skill.


POS: A point-of-sale (POS) terminal is a hardware system for processing card payments at retail locations. It has software to read magnetic strips of credit and debit cards. The point of sale or point of purchase is the time and place where a retail transaction is completed.

POS business: POS business is a legitimate way to make money in Nigeria. It is also called agent banking business, and it’s an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.

POS Agents/Retailers: This any individual that has a POS business. They are agents who carry out financial and banking services on behalf of the bank while earning their own commission.

Promoting: promoting means to support or actively encourage (a cause, venture, etc.); further the progress of something.

Entrepreneurship: Entrepreneurship is the creation or extraction of value. It is the activity of setting up a business or businesses, taking on financial risks in the hope of profit.




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