Digital Financial Inclusion and Sustainable Growth of Small and Micro Enterprises—Evidence Based on China’s New Third Board Market Listed Companies

By Liu Yang, Youtang Zhang. Sustainability, 2020

154 citations recorded by the source corpus.

The United Nations’ 2030 Agenda for Sustainable Development aims to promote inclusive and sustainable economic growth and encourage the formalization and growth of micro, small, and medium enterprises through access to financial services. This study examines the impact and mechanism of the digital financial inclusion on the sustainable growth of small and micro enterprises in China. For this purpose, it uses the data from China’s New Third Board Market listed companies from 2011 to 2018 and the digital financial inclusion index of Peking University. The results show that the development of digital financial inclusion helps promote the sustainable growth of small and micro businesses, particularly in private, high-tech industries, and competitive markets. The impact mechanism of this development prevents any financial crisis caused by the capital structure imbalance and capital liquidity problems of small and micro enterprises by alleviating the financing constraints, thus promoting their sustainable growth. The research results show that, under the background of high-quality development of China’s economy, continuous promotion of digital financial inclusion and reshaping of the ecological pattern of the financial industry can provide steady financial support for the sustainable growth of small and micro enterprises, and realize the healthy development of micro enterprises and macro economy.

Subfields: Accounting, Economics and Econometrics, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/7e1847bd485697affbd19ff0b56d9e97d6954dd6

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In Economics and Econometrics

1. Muhammad Asif Khan
2. Muhammad Sohaib
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4. Khurram Shehzad
5. Abdulai Abdul Majeed

Citations in the corpus

• Digital financial inclusion and economic growth: provincial data analysis of China (2021, background): “Previous studies have also found that digital financial inclusion helps narrow the urban and rural income gap (Zhang et al. 2019) and delivers financial support to achieve sustainable growth of micro and small enterprises by mitigating the financing constraints (Yang and Zhang 2020).”