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Financial Technology and Business Performance Among Small Medium Enterprises (SMEs) in Indonesia

Financial Technology and Business Performance Among Small Medium Enterprises (SMEs) in Indonesia
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Author(s): Rika Desiyanti (Universitas Bung Hatta, Indonesia)
Copyright: 2025
Pages: 28
Source title: Transforming Business Through Digital Sustainability Models
Source Author(s)/Editor(s): Afshan Younas (Arab Open University, Oman)and Aza Azlina Md. Kassim (Management and Science University, Malaysia)
DOI: 10.4018/979-8-3373-0608-7.ch008

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Abstract

Business performance is one of the most critical measurements for business owners to achieve their targets. Business performance is a result of company activities at a particular time. The small-medium enterprises have functioned as a leading economic activity, creators of job opportunities, an essential developing business local economy and community empowerment, creators of new markets, and become a source of innovation. The contribution of SMEs is more significant than the contribution of large enterprises. SMEs have expanded employment opportunities, established a gross domestic product, and provided a safety net mainly for low-income people to carry out productive economic activities. Competitive SMEs often play a role in increasing the country's economy and leading to the development of the global economy. Furthermore, financial technology (Fintech) plays a significant role in the business performance of SMEs by improving the scalability, accessibility, and efficiency of financial services. Digital payments and peer-to-peer lending are part of fintech solutions for SMEs.

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