Research on the alleviation paths of financing constraints for SMEs through digital transformation
Haodong Li
The University of Queensland, The University of Queensland Brisbane QLD
DOI: https://doi.org/10.59429/bam.v7i3.11330
Keywords: digital transformation; small and medium-sized enterprises (SMEs); SME financing constraints; fintech; supply chain finance; credit assessment; financial inclusion
Abstract
SMEs are critical for an economy, innovation, jobs, and growth. And these kind of companies - especially in developing countries - they're looking for finance. Traditional finance institutions usually regard SMEs as big risk borrowers because of no guarantee, lack of transparency, and no credit history which makes the issue of investment and economic resilience worse. Digital transformation drastically and swiftly changes a business model, efficiency, and info flow; this paper investigates its complicated and tricky tie to making it simpler on an SME company's cash flow, as taking up digital tech improves their financial transparency and how things work, running supply chains efficiently, and makes businesses seem more worth trusting financially. It analyzes how digital transformation benefits SME financing through big data and digital sales platforms, as well as fintech. This paper tries to find appropriate financing policy tools for SMEs' digitalization by reviewing literature and researching it.
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