Abstract
SMEs, or Small and Medium-sized Enterprises, are crucial to China's economic growth. However, their small size and limited credit rating often result in significant financing constraints, which hinder their ability to innovate. Fortunately, the advent of digital inclusive finance has opened up new financing channels and methods for SMEs. This paper analyzes data from 2013-2020 for Chinese A-share SMEs listed on the board, and matches it with Peking University's digital inclusive finance municipal data. Through empirical testing, the study confirms that digital inclusive finance can help alleviate SME financing constraints, leading to increased innovation. The research aims to explore how digital inclusive finance can provide better solutions for SME financing, promoting the innovative development of SMEs.
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