How critical is SME financial literacy and digital financial access for financial and economic development in the expanded BRICS block?

IF 2.4 Q3 COMPUTER SCIENCE, INFORMATION SYSTEMS
Frontiers in Big Data Pub Date : 2024-12-19 eCollection Date: 2024-01-01 DOI:10.3389/fdata.2024.1448571
Manoj Kumar M, Nasser Almuraqab, Immanuel Azaad Moonesar, Udo Christian Braendle, Ananth Rao
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Abstract

Introduction: The expanded BRICS block presents significant opportunities for SMEs (Small and Medium Enterprises), but challenges related to financial literacy and digital access hinder their potential. While global efforts emphasize financial literacy and digitization as key drivers of economic growth, especially in developing regions, their specific impact on SMEs in the BRICS block remains underexplored. This paper contributes to the literature by contextualizing how financial literacy and digital financial access influence SME sustainability and economic progress, particularly in light of ongoing efforts to bridge the digital divide.

Methods: Using Principal Component Analysis to reduce dimensionality, the study uses advanced Random Forest Tree modeling, to evaluate current practices in SME finance, credit access, and digitization.

Results: Results indicate that both financial literacy and digitalization play pivotal roles in driving sustainable economic development, with significant implications for policy interventions aimed at supporting SME growth in emerging economies.

Discussion: This study addresses the crucial intersection of SME financial literacy and digital financial access, focusing on their role in fostering economic development within the expanded BRICS block-a group now comprising major emerging economies that collectively face substantial disparities in financial inclusion. The study results are relevant not only for understanding the BRICS context but also for shaping global strategies toward inclusive financial systems and SME resilience in the digital era.

中小企业金融知识和数字金融渠道对扩大后金砖国家的金融和经济发展有多重要?
金砖国家的扩大为中小企业带来了重大机遇,但金融知识和数字接入方面的挑战阻碍了中小企业发挥潜力。虽然全球努力强调金融知识普及和数字化是经济增长的关键驱动力,特别是在发展中地区,但它们对金砖国家中小企业的具体影响仍未得到充分探讨。本文通过将金融知识和数字金融获取如何影响中小企业的可持续性和经济进步,特别是在弥合数字鸿沟的持续努力的背景下,对文献做出了贡献。方法:采用主成分分析降维方法,采用先进的随机森林树模型,对中小企业融资、信贷获取和数字化的现状进行评估。结果:研究结果表明,金融素养和数字化在推动经济可持续发展方面发挥着关键作用,对旨在支持新兴经济体中小企业增长的政策干预具有重要意义。讨论:本研究探讨了中小企业金融素养和数字金融获取之间的关键交集,重点关注了它们在促进扩大后的金砖国家经济发展中的作用。金砖国家目前由主要新兴经济体组成,它们共同面临着普惠金融方面的巨大差距。研究结果不仅有助于理解金砖国家背景,也有助于制定面向数字时代包容性金融体系和中小企业韧性的全球战略。
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来源期刊
CiteScore
5.20
自引率
3.20%
发文量
122
审稿时长
13 weeks
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