This study investigates the influence of financing on the digital economy of small businesses in Palestine. Through a combination of surveys and interviews with 50 Palestinian small business owners, the research reveals a nuanced relationship between financial support and its economic effects. The findings indicate that while some respondents experienced benefits such as enhanced competitiveness and market expansion, others encountered difficulties, suggesting the need for customized financial solutions. The study identifies prevalent financing mechanisms, including bank loans and government grants, and emphasizes the importance of specialized support programs in fostering entrepreneurship and generating employment. Job creation is highlighted as a significant economic impact, corroborating existing research on the role of small businesses in reducing unemployment and promoting economic stability. The study also addresses challenges related to financing, such as regulatory hurdles and political issues with international stakeholders, as noted in the literature. Overcoming these challenges is essential for maximizing the potential of small businesses in Palestine. Recommendations from respondents include simplifying regulations and enhancing collaboration between government bodies and financial institutions, offering practical measures to improve financial accessibility for small enterprises. This research contributes to a deeper understanding of how financing mechanisms can stimulate economic growth within the unique context of Palestine.