The Impact of Digital Finance, Financial Constraints, and Risk Perception of Digital Financial Services on SME Performance: an Empirical Study of SMEs in the Creative Economy Sector on Lombok Island

Authors : Siti Nur Halimah; Embun Suryani
article cite 1 Year 2025
source: Journal of Finance and Business Digital
Abstract

This study aims to examine the impact of digital finance, financial constraints, and risk perception on the performance of SMEs. Data was collected through a survey of 131 SMEs in the creative economy sector on Lombok Island that utilize digital financial services in their business operations. Purposive sampling and accidental sampling techniques were used in sample selection, while data analysis was conducted using Statistical Package for the Social Sciences (SPSS) and Structural Equation Modeling-Partial Least Squares (SEM-PLS). The study results show that digital finance positively and significantly impacts SME performance. Financial constraints do not have a significant effect, and risk perception positively and significantly impacts SME performance. These findings emphasize that digital finance improves SME performance and drives economic growth through increased business efficiency and market competitiveness.


Concepts :
FinTech, Crowdfunding, Digital Finance
SMEs Development and Digital Marketing
article cite 1 Year 2025 source Journal of Finance and Business Digital
Citations by Year
YearCount
2025 1