In recent years, with the rapid development of financial technology, digital finance has gradually become an important supplement to traditional finance and is increasingly emerging as a new driving force for financing small and medium-sized enterprises (SMEs). This paper employs literature review and logical analysis methods to explore the mechanisms through which digital finance enhances the efficiency of SME financing and to analyze its practical significance in addressing challenges such as difficult and expensive financing. Additionally, this paper identifies the current challenges faced by digital finance in areas such as information asymmetry, risk control, and regional development. Finally, this paper proposes policy recommendations to promote the healthy development of digital finance, including improving the regulatory framework, optimizing credit assessment models, and strengthening technical infrastructure, with the aim of providing theoretical support for the high-quality development of SMEs.
References
[1] Łasak, P. (2022) The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises. Journal of Entrepreneurship, Management and Innovation, 18(1), 7-34.
[2] Wang, X., Chen, X. (2023) An empirical study on financing constraints of digital inclusive finance development on small and medium-sized technology-based enterprise. Kubernetes, 52(2), 585-600.
[3] Jin, L., Liu, M. (2024) Unlocking financial opportunities: The substantial alleviation of financing constraints on small and micro enterprises through digital inclusive finance. Journal of the Knowledge Economy, 1-27.
[4] Lu, Z., Wu, J., Li, H., Nguyen, D. K. (2022) Local bank, digital financial inclusion and SME financing constraints: Empirical evidence from China. Emerging Markets Finance and Trade, 58(6), 1712-1725.
[5] Jiang, Z., Ma, G., Zhu, W. (2022) Research on the impact of digital finance on the innovation performance of enterprises. European Journal of Innovation Management, 25(6), 804-820.
[6] Agboola, O., Adelugba, I. A., Eze, B. U. (2023) Effect of financial technology on the survival of micro-enterprises. International Journal of Entrepreneurial Knowledge, 11(1), 1-13.
[7] Li, X, Ye, Y, Liu, Z, Tao, Y., Jiang, J. (2024) FinTech and SME’performance: Evidence from China. Economic Analysis and Policy, 81, 670-682.
[8] Ahmad, A., Asif, M., Lodhi, H., Qaiser, Z., Asim, J. (2025) Digital Inclusive Finance as a Catalyst for Technological Innovation in Small and Medium Enterprises in Pakistan. Pakistan Journal of Humanities and Social Sciences, 13(2), 135-145.
[9] Lin, B., Xie, Y. (2025) How does digital finance drive energy transition? A green investment-based perspective. Financial Innovation, 11(1), 94.
[10] Feng, R., Shen, C., Guo, Y. (2024) Digital finance and labor demand of manufacturing enterprises: Theoretical mechanism and heterogeneity analysis. International Review of Economics & Finance, 89, 17-32.
Share and Cite
Li, H. (2025) A Study on the Impact of Digital Finance on the Financing Efficiency of Small and Medium-sized Enterprises. Hong Kong Financial Bulletin, 1(3), 1-7.