Digitalization and Small & Medium Enterprise Performance: A Research to Improve Business Practices

Abstract

The purpose of this study is to investigate how the digitalization of business has affected American SMEs’ performance. It emphasizes the function of microloans as independent variables and fintech support as a moderator, while taking government support into account. A survey of SME owners in the USA was used to gather the data. The respondents’ use of fintech assistance, access to microloans, and the amount of government help they received were all requested of them. Key performance metrics like revenue growth, profitability, and market share were used to evaluate the performance of the SME. When the data were analyzed, it became clear that there were strong correlations between the success of SME’s and digitalization elements (such as support for fintech and microloans). According to the data, performance indicators for SMEs using microloans and fintech help were enhanced. In addition, it was shown that the presence of government support moderated the link between digitalization and SME performance, indicating that government actions are essential to maximizing the benefit of digitalization on SMEs. In order to improve SME performance, this study emphasizes the value of digitalization, notably fintech assistance and microloans. Additionally, it emphasizes the role of government assistance as a moderator, demonstrating how actions and policies that promote digitization can strengthen their beneficial effects on SMEs. Policymakers, financial institutions, and SME owners can benefit from these findings by getting insightful advice on how to conduct their businesses in order to function better in the quickly developing digital world.