The Role of Fintech Lending in Supporting MSME Growth
Keywords:
Fintech Lending, MSME Growth, Frequency of Use, Fintech AccessAbstract
This study aims to explore the role of Fintech Lending in supporting the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. The results of the analysis show that the regression model used has strong statistical significance, with a significant F value (Sig. = 0.000). Of the three independent variables tested, only Frequency of Use of Fintech services is shown to have a significant influence on MSME Growth (Sig. = 0.003). The variables of Access to Fintech and Number of Landing did not show a significant effect. The Adjusted R Square value of 0.307 indicates that this model is able to explain 30.7% of the variability in MSME growth, which suggests there are other variables outside the model that also affect MSME growth.The findings highlight the importance of frequency of use of Fintech services in driving MSME growth and suggest that Fintech service providers strengthen their strategies to increase adoption and repeated use of services by MSMEs. This study also recommends further research to identify other factors that influence MSME growth in the context of Fintech Lending.
References
(2022). A study on the growth and role of SMES in Indian economy. International journal of financial management and economics, doi: 10.33545/26179210.2022.v5.i2.158
(2023). Practical path of SME financing problems from the perspective of fintech. Academic journal of business & management, doi: 10.25236/ajbm.2023.050416
(2023). Review on the Impact of Financial Institutions’ Systems on SMEs’ Access to Finance. Central European Management Journal, doi: 10.57030/23364890.cemj.31.2.35
Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2007). Small and Medium Enterprises Across the Globe. Small Business Economics, 29(4), 415-434.
Babitha., M., N., Dr., Srinivasa, Murthy. (2024). A Study on Innovation, Technology and Sustainability of MSME's. International Journal For Multidisciplinary Research, doi: 10.36948/ijfmr.2024.v06i01.11919
Beck, T., Demirguc-Kunt, A., & Maksimovic, V. (2008). FinancinX, Zhang. (2024). Research on Strategies to Address Financing Constraints for Technology-based Small and Medium-sized Enterprises. Advances in Economics, Management and Political Sciences, doi: 10.54254/2754-1169/79/20241823g Patterns Around the World: Are Small Firms Different? Journal of Financial Economics, 89(3), 467-487.
Claessens, S., Frost, J., Turner, G., & Zhu, F. (2018). Fintech Credit Markets Around the World: Size, Drivers and Policy Issues. BIS Quarterly Review.
Darko, Popadić., Vlada, Živanović., Nada, Živanovic. (2022). The Importance of Small and Medium Enterprise Development for Efficient Global Market Environment. Chinese Business Review, doi: 10.17265/1537-1506/2022.03.003
Dian, Ayu, Widiarti., Yudha, Bhakti, Praja. (2023). Analisa dan desain sistem informasi pemasaran pada kegiatan umkm berbasis klaster. Growth, doi: 10.36841/growth-journal.v21i2.3751
Dirk, Andreas, Zetzsche., Ross, P., Buckley., Douglas, W., Arner. (2024). The rise of TechFins: regulatory challenges. doi: 10.4337/9781035314751.00027
Divya, Sajan., C., Samuel, Joseph. (2024). Banking of the unbankable- key issues and challenges in the digitalisation of microfinance. doi: 10.58532/v3bhma22p1ch11
Dorfleitner, G., Hornuf, L., Schmitt, M., & Weber, M. (2017). Fintech in Germany. Springer International Publishing.
Dr.Anjali, Srivastava. (2024). The Transformative Role of Fintech in Modern Business Organizations: A Comprehensive Analysis. Indian Scientific Journal Of Research In Engineering And Management, doi: 10.55041/ijsrem29458
Erika-Maria, Doacă. (2022). The influence of the macroeconomic environment on the financing decision in smes. Proceedings of CBU in Economics and Business ..., doi: 10.12955/peb.v3.289
F., Frank, Chen., Cong, Yin. (2024). Risk Analysis and Supervision of P2P Online Lending. Frontiers in business, economics and management, doi: 10.54097/xh4ntg56
Fatoki, O., & Asah, F. (2011). The Impact of Firm and Entrepreneurial Characteristics on Access to Debt Finance by SMEs in King Williams’ Town, South Africa. International Journal of Business and Management, 6(8), 170-179.
Greeshma, S., Nair., Nikita, Gopal. (2024). Credit Access Towards MSMEs: An Investigation of Banker’s Perspectives. SEDME. Small Enterprises development, management and extension journal, doi: 10.1177/09708464241247874
Hendri, Khuan. (2024). Fintech and the Future of Banking: Collaboration and Innovation for Better Financial Services. doi: 10.62207/c0y42z81
Humera, Tariq, Mahmood., Deniz, Eylem, Yoruk., Mark, Gilman. (2024). Impact of Financial Inclusion on SME Growth. Advances in finance, accounting, and economics book series, doi: 10.4018/979-8-3693-1475-3.ch009
Indah, Permata, Suryani., Atika, Gando, Suri., Zahra, Shafira. (2023). How Fintech Peer to Peer Lending Affected MSMEs Financial Access: Case Study Amartha. doi: 10.21107/infestasi.v19i2.22921
Jagtiani, J., & Lemieux, C. (2018). Do Fintech Lenders Penetrate Areas That Are Underserved by Traditional Banks? Journal of Economics and Business, 100, 43-54.
Joyo, Pramudya., Rina, Oktaviana., Desy, Misnawati., Dwi, Maharani. (2024). Altruism and Welfare Practices of Pempek Cek Ayu in Micro MSME Business. doi: 10.55927/ijar.v3i1.7742
María, Elena, Hernández-Hernández. (2023). Development of management skills for MSMEs, as support for their permanence and regional growth. Journal-microeconomics, doi: 10.35429/jm.2023.13.7.19.23
Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2017). Fintech and Banking. Friends or Foes? European Economy Banks, Regulation, and the Real Sector, 3, 9-30.
Priti, Bakhshi., R., Agrawal., Suhan, Mendon., Daniel, Frank., Cristi, Spulbar., Ramona, Birau., Robert, Dorin, Filip. (2024). Barriers in adoption of fintech by street vendors and hawkers in india using interpretive structural modeling. doi: 10.3846/btp.2024.19208
Qi, Sun., FungYi, Wong. (2024). Impact of Digital Inclusive Finance on Financing Constraints of Small and Medium-Sized Enterprises Review. Advances in Economics, Management and Political Sciences, doi: 10.54254/2754-1169/59/20231060
Rubinabibi, Farukh, Shaikh., Dr., Farida, Rusi, Mandviwala. (2023). A Systematic Literature Review on Role of Micro, Small and Medium Enterprises (MSMEs) in Indian Economy. International Journal of Scientific Research in Science and Technology, doi: 10.32628/ijsrst52310456
Tambunan, T. (2019). MSMEs in ASEAN. Journal of Southeast Asian Economies, 36(2), 131-147.
Tang, H. (2019). Peer-to-Peer Lenders Versus Banks: Substitutes or Complements? The Review of Financial Studies, 32(5), 1900-1938.
Thakor, A. V. (2020). Fintech and Banking: What Do We Know? Journal of Financial Intermediation, 41, 100833.
Umar, Habibu, Umar., Abubakar, Jamilu, Baita., Issa, Hamadou., Muhamad, Abduh, Abduh. (2024). Digital finance and SME financial inclusion in Africa. African Journal of Economic and Management Studies, doi: 10.1108/ajems-08-2023-0323
Wahyu, Firmandani., Elsha, Sophia., Izmi, Dwira, Eriani., Belva, Abidah, Ardelia., Adrian, Yahya. (2024). INCREASING MSMEs SALES THROUGH DETERMINING COST OF GOODS SOLD (COGS) AND DIGITAL MARKETING. Jurnal layanan masyarakat (Journal of public services), doi: 10.20473/jlm.v8i1.2024.041-051
X, Zhang. (2024). Research on Strategies to Address Financing Constraints for Technology-based Small and Medium-sized Enterprises. Advances in Economics, Management and Political Sciences, doi: 10.54254/2754-1169/79/20241823
Xiaoke, Yu. (2024). Impact of Digital Financial Inclusion on Small and Medium-Sized Enterprises. doi: 10.54097/jspqxx70
Xinmeng, Zhang. (2024). The Impact of Fintech on China's Corporate Financing Constraints - Analysis based on the perspective of enterprise life cycle. Highlights in business, economics and management, doi: 10.54097/b1dxw543
Yasmine, Derradj., Hanya, Kherchi, Medjden. (2023). The Difficulties of Access to Bank Financing by SMEs: A Questionnaire Study. Springer proceedings in business and economics, doi: 10.1007/978-3-031-22749-3_25
Yinka, James, Ololade. (2024). Sme financing through fintech: an analytical study of trends in nigeria and the usa. doi: 10.51594/ijmer.v6i4.1001
Yunling, Tang. (2023). Challenges Faced by Small and Medium-sized Enterprises in China When Seeking Low-cost Financing. Advances in Economics, Management and Political Sciences, doi: 10.54254/2754-1169/21/20230233
Zaid, Tan., Qian, Zhang., Wan, Zhu., Hungwei, Li. (2023). From Financial Institutions to Industrial Firms: The Contagion Mechanism and Prevention of Liquidity Risk: A Multi-case Study of SMEs Credit Guarantee Industry. doi: 10.53935/jomw.v2023i1.231.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Agnes Soukotta
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
