Impact of Digital Financial Inclusion on Small and Medium-Sized Enterprises

Abstract

With the rapid development of digital technology, Digital Inclusive Finance (DIF) has emerged and gradually become an important part of financial services. DIF expands service coverage and financing channels through digital technology, bringing a new kind of development opportunity for Small and Medium-Sized Enterprises (SMEs). This paper analyses the enterprises broken down into different regional and different property rights systems in order to study the degree of impact of DIF on SMEs from the perspectives of financing constraints and transformation and upgrading. It then draws the conclusion that DIF has a facilitating effect on SMEs. It can alleviate the financing constraints and reduce the financing cost of SMEs through DIF, which can help to reduce the financing cost of SMEs and improve their development. financing constraints and reduce financing costs, thus promoting innovation and upgrading of SMEs. The effects of digital financial inclusion on SMEs vary depending on location and ownership structures. From a regional perspective, digital financial inclusion has a greater impact on SMEs in the central and western regions than it does on SMEs in the eastern regions. From the perspective of property rights, non-state-owned SMEs have a greater impact on digital financial inclusion than state-owned businesses.