Publication Details
Abstract
This study examines the impact of digital financial inclusion on the growth of micro, small, and medium-sized enterprises (MSMEs) in emerging economies, with particular evidence from Uzbekistan. In recent years, the rapid expansion of digital financial services, including mobile banking, digital payment systems, and online lending platforms, has significantly transformed the financial landscape of developing countries. However, limited empirical research has investigated how digital financial inclusion contributes to MSME growth in transition economies such as Uzbekistan. The study employs secondary data obtained from national and international financial databases covering the period from 2015 to 2024. Using panel data regression analysis, the research evaluates the relationship between digital financial inclusion indicators and MSME performance variables, including business expansion, access to finance, employment growth, and revenue generation. The findings reveal that increased access to digital financial services positively affects MSME growth by reducing financial constraints, improving transaction efficiency, and expanding access to formal credit mechanisms. The results further indicate that mobile banking adoption and digital payment infrastructure play a significant role in enhancing entrepreneurial activities and supporting sustainable business development. Furthermore, the study highlights the importance of regulatory quality and financial technology development in strengthening digital financial ecosystems within emerging markets. This research contributes to the existing literature on financial inclusion and MSME development by providing empirical evidence from Uzbekistan, a rapidly digitalizing economy in Central Asia. The study offers practical policy recommendations for governments, financial institutions, and fintech providers aimed at improving digital financial accessibility and promoting inclusive economic growth.