The Impact of Digital Finance on the Viability of Small and Medium-Sized Enterprises: Research Progress and Outlook

Abstract

SMEs play an important role in the national economy, but they suffer from financing constraints and short survival cycles. Digital finance provides opportunities as an area of broad coverage, low cost and efficient. This paper systematically sorts out domestic and international literature concerning digital finance and SMEs since 2020. Research progress in this direction is summarized in four aspects: Financing constraints, operational performance, innovation and resilience. The `blood transfusion–blood generation–resilience' chain mechanism is distilled from the same source and reveals its distinct enabling characteristics, in different property rights, local and regional contexts. In practical challenges, i.e. poor digital capabilities, data security risks, institutional transformation pressure and lack of coordination of policy, as well as related safeguards, and direction for future research. This paper aims at clarifying research in this field, closing research gaps, and providing a framework for digital finance policies of SMEs and for digital transformations.