Financial Inclusion for SMEs: Role of Digital Micro-financial Services

Rasheed, Rabia; Siddiqui, Sulaman Hafeez; Mahmood, Iqbal; Khan, Sajjad Nawaz

doi:10.26710/reads.v5i3.686

Cited by 40 publications

(30 citation statements)

References 9 publications

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“…These proportions are a reflection of the traditional forms of finance favoured by the WB when financing development projects, during the period of study, in contrast to the arguments put forward by Rasheed et al [22].…”

Section: Volume Of Financementioning

confidence: 80%

“…The majority come from homes without financial resources, have a low level of education, are outside of the labour market or are self-employed, and a higher percentage are women [20,21]. As for companies, SMEs face the greatest difficulty accessing the financial system, since banking and non-banking financial institutions are usually reluctant to provide financing to SMEs, especially in developing countries [22].…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…International financial institutions, in order to achieve their development and poverty reduction goals, should allocate resources to the financing of development projects that play a decisive role in their outcomes, since an effective project is the reflection of an effective investment with high social and also commercial returns [27]. The WB, in particular, has carried out projects to improve financial inclusion in developing countries, adopting modern finance systems to achieve its poverty reduction goals [22].…”

Section: Theoretical Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

The Role of the World Bank in the Inclusive Financing of Tourism as an Instrument of Sustainable Development

Carrillo‐Hidalgo

Fernández

2019

Sustainability

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It is widely accepted that tourism, given the right conditions, can be an important instrument of economic growth and a means of improving the quality of life for the societies in which it is implemented, particularly in developing territories. International financial institutions are aware of the role that tourism can play in this regard and, accordingly, have included it within their strategies to further sustainable development and financial inclusion. The World Bank is one of the institutions working to foster tourism, although, interestingly, it only began working in this area very recently (2016). This paper analyses the role of the World Bank in the inclusive financing of tourism as an instrument of sustainable development and compares it with the finance allocated to another four sectors in the branch of trade and industry. To this end, using a system of indicators previously tested in the literature, it analyses a total of ninety-two projects directly related with tourism, trade, manufacture, services, and housing construction activity. The results obtained, when compared to the finance allocated to other sectors of trade and industry (to which tourism also belongs), indicate that the World Bank’s financing of tourism could sharpen its focus on financial inclusion, which would ensure greater efficiency and efficacy in the attainment of its poverty reduction and development goals.

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Section: Volume Of Financementioning

confidence: 80%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

See 1 more Smart Citation

The Role of the World Bank in the Inclusive Financing of Tourism as an Instrument of Sustainable Development

Carrillo‐Hidalgo

Fernández

2019

Sustainability

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“…Hence, it would be able to cover the ground that banking institutions alone would never be able to cover. There were sector specific studies where it has been shown that one of the major steps undertaken by MSME's to promote financial inclusivity is digital financing (Madan, 2020;Rasheed, Siddiqui, Mahmood, & Khan, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Triggers and Barriers of Financial Inclusion: A Country-Wise Analysis

Mukherjee

Sood

2020

Asian Economic and Financial Review

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The objective of this study was twofold. The first goal was to construct a composite multi-dimensional index for financial inclusion using two stage principal component analysis for 91 countries for two benchmark years, 2011 and 2014 which includes both supply and demand side factors and compare the rank mobility using the World Bank Findex database. The second goal was to track the binding determinants of financial inclusion using a panel fixed effects model. A panel ordered probit model was used to judge the extent of causality between growth, sectoral share, female workforce participation, poverty reduction with different levels of financial inclusion. The middleand low-income countries can reach their potential if the sources of barriers have been tracked efficiently as this is the main constraint for an inclusive financial system. Toreduce the multidimensional poverty through endogenous stimulus of the poor population in South-Asian, Sub-Saharan and few Latin American countries, it is essential to reinforce the provision of financial resources for the working-age female population and to improve the affordability and accessibility of inclusive investment for rural populations. Contribution/ Originality: The paper proposes a new estimation methodology for constructing a multidimensional financial inclusion index considering both demand and supply side parameters. The study explored the causality of financial inclusion with other macroeconomic variables such as inclusive growth and financial stability, employment, poverty using the panel ordered probit model.

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“…Small and medium enterprises are considered as engines of economic development and key contributors to economic activity, as a key-source of employment, growth, and invention (Rasheed et al, 2019). SMEs perform a significant role in the national financial system all over the world, providing employment, and contributing to innovation in the financial system which contribute significant efforts to achieve environmental sustainability and more inclusive growth in finance (Oecd, 2017).…”

Section: Introductionmentioning

confidence: 99%

SMEs Intention towards Use and Adoption of Digital Financial Services

Siddiqui

Khan

2019

sbsee

Self Cite

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The purpose of this study is to analyses the SMEs owners and managers intention towards use and adoption of digital financial services in South Punjab, Pakistsan. SMEs are considered key contributors to economic activity, as a key-source of employment, growth, and invention. SMEs perform significant role in the system of national financial regulation all over the world, Jobs creation, and contributing to modernization in the financial regulation are significant exertions to achieve ecological sustainability and more growth in access to finance. Access to finance in emerging countries is one of core issue in development of SME sector as well as obstacle in economic growth. Microfinance institutions are considered a good manifesto to enhance access to inclusive finance as well as stress-free access to finance and financial literacy for SMEs to support economic growth but in Pakistan, to obtain these finances not easy for SMEs sectors. SMEs are unfortunately still struggling due to lack of inclusive finance and financial literacy. Recently financial institution introduced digital financial services at micro level that provide access to financial services to each and every citizen in the country without any restriction. To accomplish the purpose of the research, the data was acquired from the SMEs owners and mangers with a sample of 232 chosen randomly of South Punjab, Pakistan. In this research study, merged two best theories; the theory of planned behavior and technology acceptance model was used to describe their behavior. Multiple statistical tests run to check the normality by using Shapiro-Wilk test, reliability and multicollinearity of the data to test the assumptions of regression and correlation. Finally, the results of this intended study revealed that there is a moderate significant but positive relationship between the SMEs owners and managers intention towards use and adoption of digital financial services. The Government of Pakistan should create finance related awareness program, training, technical institution and make a rules and regulation. Further this study suggests to researchers that focus on internal and as well as external factors of SMEs in Pakistan.

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Financial Inclusion for SMEs: Role of Digital Micro-financial Services

Cited by 40 publications

References 9 publications

The Role of the World Bank in the Inclusive Financing of Tourism as an Instrument of Sustainable Development

The Role of the World Bank in the Inclusive Financing of Tourism as an Instrument of Sustainable Development

Triggers and Barriers of Financial Inclusion: A Country-Wise Analysis

SMEs Intention towards Use and Adoption of Digital Financial Services

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