This study aims to examine the impact of FinTech development on financial inclusion and entrepreneurial finance, particularly the availability of equity and debt financing for small and medium enterprises (SMEs) across both emerging and developed economies. By examining these dynamics, the study highlights the link between FinTech development and SMEs’ growth, emphasizing how enhanced financial accessibility promotes economic development.
The sample includes 41 countries listed in the Global FinTech Index country rankings report (Findexable, 2021) and the Global Financial Inclusion Index report (2023). A series of regression analyses is conducted to examine this relationship, controlling for a range of other country characteristics over the period 2022–2023.
The results indicate that countries with high Fintech development exhibit higher financial inclusion and score high in the availability of financial resources to SMEs. The findings highlight the transformative role that FinTech development plays in promoting financial inclusion and advancing entrepreneurial finances.
The study highlights the importance of investing in FinTech infrastructure and financial literacy to enhance FinTech-driven inclusion and entrepreneurship. It also points to significant investment opportunities in emerging markets, where FinTech can address existing financial access gaps.
This study uniquely examines FinTech development in three dimensions: quantity, quality and environment, and its impact on financial inclusion and entrepreneurial finance. By situating FinTech within a global context, this research seeks to advance the expanding body of literature on FinTech’s evolving role in modern financial ecosystems, providing deeper insights into its implications for economic growth and innovation.
