Exploring the Mediating Role of Digital Finance in Enhancing Financial Literacy and Inclusion: Insights from Pakistan's Textile SMEs

Abstract

Purpose­- This research aims to evaluate the effectiveness of SME’s textile industries in Pakistan by analyzing the financial inclusion and financial literacy of SME’s performance mediated by digital finance.

Design/methodology/approach- Data for this research was collected from a survey questionnaire. This study is based on employees of microfinance, considering a sample size of 384. The data were gathered from different SME’s Textile Industries in Punjab. The sample size was taken according to (Krejcie, & Morgan, 1970). We will distribute 384 questionnaires among frontline management, middle management, and top management, and in return, we will collect 380 questionnaires. Analysis Variables is used by quantitative methods through SPSS and Smart PLS software. A simple Random Sampling technique will be used for selecting respondents.

Findings- These findings revealed that FI and Fl positively affect the DF and SP. Moreover, DF has a little bit of significance on SP.

Originality/Value- Any industry regarding the employees while using digital finance and the SME’s performance are facing difficulties, because many organizations are not using the new technologies as digital finance etc, which are very helpful for any organization for their success. This study highlights an overlook that FI and FL show a mediated effect on DF and SP.