The Impact of Digital Financial Services on the Growth and Efficiency of Small and Medium Enterprises (SMEs)

Shivang Chand

Abstract: Digital financial services (DFS) have transformed how small and medium enterprises (SMEs) manage finances, access credit, and execute transactions. This study investigates the impact of DFS adoption on SME growth and operational efficiency. Using a mixed-methods approach combining survey data from 400 SMEs and 30 in-depth interviews, findings indicate that DFS significantly enhances business performance by increasing financial inclusion, reducing transaction costs, and improving access to working capital. While adoption barriers include technological literacy and cybersecurity concerns, overall evidence suggests that integrating DFS strategies contributes positively to SME scalability and competitiveness. Policy implications emphasize supportive regulatory frameworks and targeted training programs to maximize the benefits of digital finance for SMEs.

Keywords: Digital Financial Services, Small and Medium Enterprises, SME Growth, Operational Efficiency, Financial Inclusion, Digital Adoption

How to Cite?: Shivang Chand, "The Impact of Digital Financial Services on the Growth and Efficiency of Small and Medium Enterprises (SMEs)", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 1361-1362, https://www.ijsr.net/getabstract.php?paperid=SR251231171402, DOI: https://dx.doi.org/10.21275/SR251231171402