CHALLENGES AND OPPORTUNITIES FACING SME CREDIT

Abstract

In recent years, the role of small and medium-sized enterprises (SMEs) in economic development has become increasingly prominent. These enterprises play an irreplaceable part in promoting employment, driving innovation, and fueling economic growth. However, SMEs encounter significant obstacles when attempting to access credit resources, which has emerged as a primary factor hindering their growth and development. The limited availability of credit has been demonstrated to have a deleterious effect on the survival and expansion of SMEs, as well as on the overall healthy development of the economy. The rapid advancements in digital financial technologies and the deepening implementation of inclusive finance policies have led to a growing focus on optimizing the credit environment for SMEs by both academia and the business community. The objective of this study is to examine the challenges and opportunities SMEs encounter in accessing credit, with a particular focus on their specific manifestations against the backdrop of digital transformation and policy support.Research on credit accessibility for small and medium-sized enterprises (SMEs) has made considerable progress. Research has identified information asymmetry as a primary contributing factor to the challenges faced by SMEs in accessing credit. Small- and medium-sized enterprises (SMEs) frequently lack standardized financial information and sufficient collateral, which makes it challenging for financial institutions to accurately assess their credit risk. Consequently, this dynamic has the effect of increasing lending costs and risk premiums. Additionally, the reduced operational scale and diminished risk-bearing capacity of SMEs serve to further exacerbate the financial institutions' credit caution. Nonetheless, the advent of digital financial technologies—including big data, artificial intelligence, and blockchain—has engendered innovative solutions to address information asymmetry. The integration of multi-source data facilitates the development of precise credit assessment models, thereby enhancing SMEs' access to credit. Despite the innovations introduced by digital financial technologies, small- and medium-sized enterprises (SMEs) continue to encounter significant challenges within the credit market. These challenges include limitations in technology application, data security concerns, and inadequate policy support.