Financial Inclusion and Micro-Credit Accessibility as Determinants of SME Resilience during Periods of Contracting Household Consumption
DOI:
https://doi.org/10.70076/simj.v3i3.211Keywords:
Financial Inclusion, Micro-Credit Accessibility, SME Resilience, Household Consumption, Small and Medium-Sized Enterprises, Financial AccessAbstract
Periods of contracting household consumption present significant challenges for small and medium-sized enterprises (SMEs), particularly through declining demand, tighter cash flow, and operational constraints. In such circumstances, financial inclusion and access to micro-credit may provide SMEs with financial resources that support their capacity to withstand economic pressure and adapt to changing market conditions. This study aims to examine financial inclusion and micro-credit accessibility as determinants of SME resilience during periods of contracting household consumption. The study adopts a quantitative research approach, with data collected from SME owners or managers through a structured questionnaire. Financial inclusion is assessed through access to and use of formal financial services, while micro-credit accessibility reflects the availability, affordability, and ease of obtaining credit for business activities. SME resilience is measured through the ability of businesses to maintain operations, respond to declining demand, manage financial pressures, and adapt to changing market conditions. The proposed analysis examines the individual and simultaneous effects of financial inclusion and micro-credit accessibility on SME resilience. The study is expected to contribute empirical evidence concerning the role of inclusive financial access in strengthening SME capacity to withstand demand-side economic pressures and provide implications for financial institutions and policymakers in designing more accessible SME financing mechanisms.
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