Inclusive Finance and Small and Medium-Sized Enterprises Financing Constraints-Practical Challenges, Structural Causes, and Policy Optimization in Developing Economies

DOI

10.2991/978-94-6239-801-6_66How to use a DOI?

Keywords

Inclusive Finance; SME Financing; Financing Constraints; Developing Countries; Financial Support

Abstract

Small and medium-sized enterprises (SMEs) play a crucial role in promoting employment, driving technological innovation, and enhancing economic resilience. However, for a long time, SMEs have generally faced limited financing channels and high financing costs. Financing constraints have become an important factor restricting their sustainable development and structural upgrading. This paper adopts a research method combining literature analysis and comprehensive induction. From three levels - the conditions of SMEs themselves, the supply of inclusive financial services, and the external institutional environment - it systematically analyzes the practical difficulties and causes faced by inclusive finance in empowering SMEs in financing. The research finds that although inclusive finance and digital finance have developed rapidly, problems such as high financing costs, single financing structure, and insufficient long-term funding supply still remain prominent. The root causes lie in the insufficient transparency of enterprise information, the limited risk pricing ability of financial institutions, and the incomplete credit system and policy support mechanism. Following the analysis, this article recommends enterprise capacity building, financial institution service optimization, and institutional environment improvement to lead policy and practice.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xun Zhao
PY  - 2026
DA  - 2026/10/23
TI  - Inclusive Finance and Small and Medium-Sized Enterprises Financing Constraints-Practical Challenges, Structural Causes, and Policy Optimization in Developing Economies
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 617
EP  - 627
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_66
DO  - 10.2991/978-94-6239-801-6_66
ID  - Zhao2026
ER  -