The Impact of Information Technology Innovation on the Financing Constraints of Small and Medium-Sized Enterprises: An Empirical Research Based on Panel Data

This paper is predicated on the assumption of China's fast growth of digital finance, which may aid the nation in better realizing financial service democratization and lowering the high cost of conventional financial services. The purpose of this article is to examine the link between the growth of digital finance and the financing restrictions of small and medium-sized enterprises, specifically whether the development of digital finance can effectively ease enterprise financing constraints. This study may contribute to a degree to the country's subsequent digital finance development strategy. Corporate data from 2011 to 2018 and the financial inclusion index from the same time were utilized in this article. Analyses using econometrics and big data models indicate that digital finance may significantly reduce SMEs' funding restrictions, however, the conclusions are not conclusive. It demonstrates that digital banking has a broader impact than merely assisting small and medium-sized enterprises in overcoming obstacles. It is suggested that China can also introduce relevant policies to further help small and medium-sized enterprises solve financing difficulties.