Evolutionary game analysis of digital inclusive finance for high-quality development of small and medium-sized enterprises

Abstract

Chapter 3 of this article builds a dynamic evolutionary game model encompassing the government, financial institutions, and small and medium-sized enterprises (SMEs). This model allows us to comprehend the dynamic process of game player evolution. This study derives a strategic orientation for digital inclusive finance to enable high-quality development of SMEs from an economic perspective. The findings illustrate that financial institutions and SMEs spontaneously and actively choose to implement digital inclusive finance strategies, jointly encouraging digital inclusive finance. If financial institutions do not strictly implement digital inclusive finance, SMEs tend not to use them actively, even if they are beneficial. A higher cost for SMEs to adopt digital inclusive finance also hinders realization of their high-quality development. Thus, The government needs to accelerate the cultivation of a digital inclusive financial market. Financial institutions reduce the cost of using digital inclusive finance for small and medium-sized enterprises Including SMEs in the digital inclusive finance service scope can leverage the enabling effect toward high-quality SME development.