Welcome to Francis Academic Press

Academic Journal of Business & Management, 2025, 7(1); doi: 10.25236/AJBM.2025.070101.

A Study of the Impact of Digital Financial Inclusion on the Performance of Small and Medium Enterprises (SMEs)

Author(s)

Dong Xinyao

Corresponding Author:
Dong Xinyao
Affiliation(s)

Ersha International Campus, Guangzhou Zhixin High School, Guangzhou, 510632, China

Abstract

This study applies the multi-layer mediation effect analysis of the structural equation model to deeply analyze the impact mechanism of digital inclusive finance on the performance of SMEs, covering the relationship between technological innovation, financing constraints, etc. and enterprise performance, as well as to provide policy recommendations for the development of the digital economy in the future. Research shows that digital inclusive finance effectively reduces financing costs and risks, greatly promotes technological innovation and R&D investment, and significantly improves the market competitiveness and economic efficiency of enterprises. Therefore, policymakers should plan and guide the development of digital inclusive finance, increase infrastructure investment and improve regulation; financial institutions should enhance their service capacity and innovate their products; and SMEs need to actively utilize digital financial tools and strengthen their technological innovations, so as to give full play to the role of digital inclusive finance, tap the potential of SMEs, and promote the sustained and healthy development of the economy.

Keywords

digital financial inclusion; small and medium-sized enterprises (SMEs); business performance; mechanism test; mediation effect test

Cite This Paper

Dong Xinyao. A Study of the Impact of Digital Financial Inclusion on the Performance of Small and Medium Enterprises (SMEs). Academic Journal of Business & Management (2025) Vol. 7, Issue 1: 1-12. https://doi.org/10.25236/AJBM.2025.070101.

References

[1] Yu P, Duan JX. Digital Inclusive Finance, Enterprise Heterogeneity and Innovation of Micro, Small and Medium Enterprises[J]. Contemporary Economic Management, 2020, 42(12): 79-87.

[2] Wan Jiayu, Zhou Qin, XIAO Yi. Digital finance, financing constraints and corporate innovation[J]. Economic Review, 2020, (1): 71-83.

[3]Zhang Zheng ping, Wang long. The impact of digital finance on the business efficiency of small and medium-sized enterprises--an empirical study based on Shenzhen GEM data[J]. China Circulation Economy, 2021, 35(8): 30-39.

[4] Fang J, Wen ZL, Zhang MQ, et al. Analysis of multiple mediation effects based on structural equation modeling[J]. Psychological Science, 2014, 37(3): 735-741.

[5] Wang Xinglong. Research on the Impact of Digital Economy on Financial Inclusion--Theoretical Mechanism and Empirical Test[J]. North Finance, 2022, (12): 54-59.

[6] J. Fang, M. Q. Zhang, L. Zhang, et al. Mediation effects test procedure and its application[J]. Psychological Journal, 2004, 36(6): 614-620.

[7] Wang Xun, Huang Yiping, Gou Qin, et al. How digital technology is changing financial institutions: China's experience and international insights[J]. International Economic Review, 2022, (1): 70-85.

[8] Liu Li, YANG Hongrui. Digital Finance, Financing Constraints and Science and Technology Innovation of Small and Medium-sized Enterprises-An Empirical Study Based on New Third Board Data[J]. East China Economic Management, 2022, 36(5): 15-22.

[9] He Jian, Wei Tao, Ni Chaojun. How can digital finance alleviate the difficulties of SME financing? [J]. Wuhan Finance, 2021, (3): 29-36.

[10] Xie Xueyan, Zhu Xiaoyang. Digital finance and technological innovation of small and medium-sized enterprises-Evidence from New Third Board enterprises[J]. International Financial Studies, 2021, (1): 87-96.

[11] Zhao Shaoyang, Li Mengxue, She Kaiwen. Digital finance and the availability of financing for small and medium-sized enterprises (SMEs)-micro evidence from bank lending[J]. Economics Dynamics, 2022, (8): 9-11.