Impact of Digital Inclusive Finance on Financing Constraints of Small and Medium-Sized Enterprises Review

Abstract

This review examines the influence of digital inclusive finance (DIF) on financing constraints of small and medium-sized enterprises (SMEs). As DIF is introduced to more and more enterprises, it has brought many opportunities to enterprises along with global economic growth. The introduction and development of digital financial inclusion has eased the financing constraints of SMEs, reduced information asymmetry and costs, and improved efficiency and capital availability. Research shows that digital financial inclusion has an alleviating effect on financing constraints. This paper provides a review of current research, including an overview of digital financial inclusion, SME financing constraints, and how digital financial inclusion affects SME financing constraints. In addition, this paper states the possible solutions for how digital inclusion can be more widely promoted. Additionally, this paper finds the shortcomings of the existing research to provide a different point of view for future researchers to look at the influence of digital inclusive finance on the financing constraints of SMEs.