POLITICS OF CURRENCY REDESIGN ON THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES IN RIVERS STATE, NIGERIA

Abstract

This thesis examined the relationship between currency redesign and the growth of small and medium scale enterprises in Rivers state, Nigeria. The objective was to establish the relationship between currency redesign and the growth of small and medium scale enterprises in Rivers state. The study had 62 small and medium scale enterprises as population with 310 sample representative. Currency redesign was measured by currency scarcity, liquidity crunch, cash accessibility and withdrawal limit while growth of small and medium scale enterprises was measured by profitability, sales growth and assets growth. Data was collected using a self-administered structured questionnaire and validated for the study. The study adopted the quantitative method of data analysis which means that the gathered data from the retrieved research questionnaire was analyzed statistically and in three phases’ namely descriptive analysis, univariate analysis and bivariate analysis. The study found moderate positive relationship currency scarcity and the sales growth of small and medium scale enterprises in Rivers State. The study found a correlation coefficient of 59.7 percent with a corresponding probability coefficient of .019 which implies that we reject the null hypothesis. The study found from the second hypothesis there is positive and significant relationship between liquidity crunch and the profitability of small and medium scale enterprises in Rivers State with a correlation coefficient of 79.3 percent with a corresponding probability coefficient of .000 which implies that we reject the null hypothesis. The study found from the second hypothesis there is positive and significant relationship cash accessibility and the assets growth of small and medium scale enterprises in Rivers State value with a correlation coefficient of 59.2 percent with a corresponding probability coefficient of .003 which implies that we reject the null hypothesis. From the findings, we conclude that there is significant relationship between currency redesign and the growth of growth of small and medium scale enterprises in Rivers state. it recommend that the government block any channel, particularly those within the government that could stymie the successful implementation of the country's currency issuance/redesign.