Empowering SMEs: How Financial Inclusion Drives Growth Amidst Challenges

Abstract

The global success or failure of small and medium-sized firms has been a topic of controversy among professionals and politicians. The study set out to do four main things: first, to determine what SMEs bring to the table; second, to catalog the challenges these companies confront; third, to look into how financial inclusion helps SMEs grow; and finally, to prove that there is a link between the two. The study used a cross-sectional research strategy. Along with the descriptive approach, inferential statistics were included. Data was analyzed using regression and correlation. Financial inclusion has a significant role in supporting the growth of SMEs, as shown by the poll. Financial services are costly to acquire and maintain, using some of them could be difficult, and consumers are often treated rudely and disrespectfully by financial organizations, according to the report. The research recommends that banks and other financial institutions continue informing the public about all of their offerings, not just the popular credit options. Digital financial service providers should encourage their clients to use their low-cost, risk-averse products. Small and medium-sized businesses (SMEs) should create goods that can compete in domestic and international markets, and reduced capital costs should be instituted to encourage borrowing.