Volume VI Special Issue III March 2026

Name of Author : Prof. Imran Ahmad Naseem Ahmad

Title of the paper : Financial Inclusion and Productivity of MSMEs: A Structural Perspective

Abstract: Purpose This study investigates the structural relationship between financial inclusion and the productivity of Micro, Small, and Medium Enterprises MSMEs, with particular attention to how inclusive financial systems influence efficiency, growth, and enterprise sustainability. Methodology The paper adopts a systematic review approach, synthesizing peer reviewed empirical and theoretical studies published. Drawing on development finance theory and productivity economics, the review examines evidence on formal credit access, digital financial services, and financial capability in shaping MSME performance. Findings The analysis reveals that financial inclusion enhances MSME productivity by easing liquidity constraints, reducing transaction costs, improving financial discipline, and supporting technology adoption. However, structural barriers such as credit rationing, digital divides, and institutional weaknesses constrain the magnitude of these benefits, especially in developing economies. Implications Policy effectiveness depends on integrating financial inclusion initiatives with institutional, digital, and infrastructural reforms. Originality The study provides a structural synthesis linking financial inclusion mechanisms to MSME productivity outcomes.

Keywords : Financial Inclusion; MSME Productivity; Digital Finance; Structural Constraints; Development Economics

DOI :

Page Number : 26-32