Point-Of-Sale (POS) System Utilization and Growth of Small and Medium Enterprises (SMEs) in South East Nigeria

Abstract

This study examined Point-of-Sale (POS) systems on the growth and sustainability of small and medium-sized enterprises (SMEs) in South-East Nigeria. The research sought to determine how POS transaction frequency, transaction value, terminal penetration, system integration, and employee training influence customer base expansion. The study was anchored on Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT). A survey design was adopted. The population of 8370 registered manufacturing SMEs was used and the elements of the populations are the owners and managers. 367 sample size was determine using Krejcie and Morgan sample size determination table. Out of 367 copies of questionnaire distributed across the South-East, 350 copies was valid for analysis and the rest were invalid. The analysis employed descriptive statistics and linear regression using SPSS (Version 23). Findings revealed that the frequency of POS transactions had significant positive effect on expansion of SMEs’ customer bases. Similarly, the value of POS transactions had significant positive effect on customer base expansion. POS terminal penetration per outlet also had a significant positive effect on customer base expansion. Furthermore, the integration of POS systems into business functions had significant positive effects on customer base expansion. Finally, employee training had significant positive effect on customer base expansion. The study concluded that POS systems are not merely technological tools but strategic enablers of SME growth, enhancing customer base, market competitiveness, and operational efficiency. It recommended wider adoption, integration, and training initiatives to maximize the transformative role of POS in SME sustainability.