Skip to main content

Determinants of Financial Inclusion in Small and Medium Enterprises: Empirical Evidence from Afghanistan

Mohammad Hasham

Volume 5 Issue 4 | Dec 2022

DOI: 10.31841/KJEMS.2022.130

Views: 374

Total Downloads: 3

Download PDF


This study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Afghanistan. The study uses quantitative methodology with primary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, institutional framework factors, costs of borrowing, and collateral requirements have a positive effect on the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial services to SMEs.
Keywords: Access to finance; collateral requirements; cost of borrowing; SMEs; financial inclusion; Afghanistan.