The Effect of Digital Financial Inclusion On Microenterprise Performance

Zulfahmi Lubis

Abstract


Abstract: This study examines the effect of digital financial inclusion on microenterprise performance. Microenterprises play a crucial role in economic development but often face constraints related to limited financial access and inefficient financial management. This study employs a quantitative approach using primary data collected from microenterprise owners who utilize digital financial services. The data were analyzed using multiple linear regression to assess the relationship between digital financial inclusion and microenterprise performance. Digital financial inclusion is measured through indicators such as the use of digital payment systems, mobile banking, and fintech-based financial services, while microenterprise performance is assessed based on sales growth, profit growth, and business sustainability. The results indicate that digital financial inclusion has a positive and significant effect on microenterprise performance. Increased utilization of digital financial services improves operational efficiency, enhances cash flow management, and supports better business decision-making. The findings suggest that digital financial inclusion is an important driver of microenterprise performance in the digital economy. This study concludes that strengthening digital financial inclusion, accompanied by improved financial and digital literacy, can contribute to the sustainable development of microenterprises. These findings provide valuable implications for policymakers and financial institutions in designing inclusive digital financial strategies. Keywords: Digital Financial Inclusion,Microenterprise Performance,Digital Payments,Intech, Financial Inclusion

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DOI: https://doi.org/10.3059/insis.v0i0.28806

DOI (PDF): https://doi.org/10.3059/insis.v0i0.28806.g15495

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