Volume: 12 Issue: 1
Year: 2024, Page: 51-74,
Received: April 30, 2024 Accepted: June 1, 2024 Published: June 5, 2024
Digital financial inclusion, facilitated by fintech adoption, is increasingly recognized as a vital driver of economic growth and entrepreneurship. This study delves into the nuanced relationship between fintech adoption and the digital financial inclusion of startups in India, with a focus on the MSMEs sector.
In the backdrop of India's ambitious goal to become a developed nation by 2047, the integration of the country's smallest businesses into the digital ecosystem is imperative. Despite the pivotal role played by MSMEs in the Indian economy, many remain in the unorganized sector, hindering their access to formal financial services and government welfare schemes. This credit gap severely constrains their growth potential and hampers overall industry development.
Fintech, epitomizing the innovative use of technology in financial services, offers a promising avenue for addressing these challenges. Fintech-enabled financial inclusion encompasses the digital access and utilization of formal financial services, particularly through mobile phones and computers. In recent years, fintech payment platforms have emerged as a popular alternative to traditional banking methods in India, offering accessibility, affordability, and usability to startups and small businesses.
This study not only examines how startups leverage fintech solutions to overcome financial barriers but also sheds light on the broader discourse of financial inclusion. By understanding the intricate relationship between fintech adoption and digital financial inclusion, it elucidates how technological innovation empowers emerging businesses and contributes to economic growth.
Furthermore, the research explores the challenges associated with fintech-led payments and digital lending adoption among small merchants. By identifying these obstacles, policymakers and stakeholders can devise informed strategies to promote fintech adoption and enhance financial inclusion for startups and small businesses in India.
Through empirical analysis and qualitative insights, this study aims to provide actionable recommendations for fostering a more inclusive financial landscape, where startups can thrive and contribute meaningfully to India's economic development.
Keywords: Digital financial inclusion, Fintech adoption, Startups, MSMEs, Economic growth
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PATIL N A, SHIVAPPA. DIGITAL FINANCIAL INCLUSION OF STARTUPS THROUGH FINTECH ADOPTION. IEMSJMR.2024;12(1):51-74