{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,6,5]],"date-time":"2026-06-05T04:47:53Z","timestamp":1780634873587,"version":"3.54.1"},"reference-count":66,"publisher":"Frontiers Media SA","license":[{"start":{"date-parts":[[2024,12,19]],"date-time":"2024-12-19T00:00:00Z","timestamp":1734566400000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":["frontiersin.org"],"crossmark-restriction":true},"short-container-title":["Front. Big Data"],"abstract":"<jats:sec><jats:title>Introduction<\/jats:title><jats:p>The expanded BRICS block presents significant opportunities for SMEs (Small and Medium Enterprises), but challenges related to financial literacy and digital access hinder their potential. While global efforts emphasize financial literacy and digitization as key drivers of economic growth, especially in developing regions, their specific impact on SMEs in the BRICS block remains underexplored. This paper contributes to the literature by contextualizing how financial literacy and digital financial access influence SME sustainability and economic progress, particularly in light of ongoing efforts to bridge the digital divide.<\/jats:p><\/jats:sec><jats:sec><jats:title>Methods<\/jats:title><jats:p>Using Principal Component Analysis to reduce dimensionality, the study uses advanced Random Forest Tree modeling, to evaluate current practices in SME finance, credit access, and digitization.<\/jats:p><\/jats:sec><jats:sec><jats:title>Results<\/jats:title><jats:p>Results indicate that both financial literacy and digitalization play pivotal roles in driving sustainable economic development, with significant implications for policy interventions aimed at supporting SME growth in emerging economies.<\/jats:p><\/jats:sec><jats:sec><jats:title>Discussion<\/jats:title><jats:p>This study addresses the crucial intersection of SME financial literacy and digital financial access, focusing on their role in fostering economic development within the expanded BRICS block-a group now comprising major emerging economies that collectively face substantial disparities in financial inclusion. The study results are relevant not only for understanding the BRICS context but also for shaping global strategies toward inclusive financial systems and SME resilience in the digital era.<\/jats:p><\/jats:sec>","DOI":"10.3389\/fdata.2024.1448571","type":"journal-article","created":{"date-parts":[[2024,12,19]],"date-time":"2024-12-19T06:25:25Z","timestamp":1734589525000},"update-policy":"https:\/\/doi.org\/10.3389\/crossmark-policy","source":"Crossref","is-referenced-by-count":9,"title":["How critical is SME financial literacy and digital financial access for financial and economic development in the expanded BRICS block?"],"prefix":"10.3389","volume":"7","author":[{"suffix":"V.","given":"Manoj Kumar","family":"M.","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Nasser","family":"Almuraqab","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Immanuel Azaad","family":"Moonesar","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Udo Christian","family":"Braendle","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Ananth","family":"Rao","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"1965","published-online":{"date-parts":[[2024,12,19]]},"reference":[{"key":"B1","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1186\/s40497-019-0191-1","article-title":"Effect of owner-manager's financial literacy on the performance of SMEs in the Cape Coast metropolis in Ghana","volume":"9","author":"Agyapong","year":"2019","journal-title":"J. Glob. Entrepreneur. Res."},{"key":"B2","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/23311975.2023.2189998","article-title":"Sustainable performance based on entrepreneurship, innovation, and green HRM in e-business firms","volume":"10","author":"Al-Abbadi","year":"2023","journal-title":"Cogent Busin. Managem."},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1007\/978-981-10-6053-3_4","article-title":"Financial literacy of entrepreneurs in the small and medium enterprises","author":"Ali","year":"2018","journal-title":"Adv. Busin. Res. Int. Conf."},{"key":"B4","first-page":"5429","article-title":"Analysis of the relation between financial literacy and entrepreneur","volume":"13","author":"Azmi","year":"2020","journal-title":"J. Eng. Res. Technol."},{"key":"B5","doi-asserted-by":"publisher","first-page":"1670","DOI":"10.1080\/20430795.2021.1962663","article-title":"Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria","volume":"13","author":"Babajide","year":"2021","journal-title":"J. Sustain. Finan. Invest."},{"key":"B6","doi-asserted-by":"publisher","first-page":"203","DOI":"10.1017\/S0962492921000039","article-title":"Fit without fear: remarkable mathematical phenomena of deep learning through the prism of interpolation","volume":"30","author":"Belkin","year":"2021","journal-title":"Acta Numerica"},{"key":"B7","article-title":"\u201cThe financial accelerator in a quantitative business cycle framework,\u201d","volume-title":"NBER Working Paper 6455","author":"Bernanke","year":"1999"},{"key":"B8","first-page":"1","article-title":"The influence of financial literacy on SMES performance through access T finance and financial risk attitude as mediation variables","volume":"24","author":"Buchdadi","year":"2020","journal-title":"Acad. Account. Finan. Studies J"},{"key":"B9","first-page":"88","article-title":"Financial literacy: Measurement and determinants","volume":"4","author":"Das","year":"2016","journal-title":"EPRA Int. J. Econ. Busin. Rev."},{"key":"B10","doi-asserted-by":"publisher","first-page":"31","DOI":"10.1177\/014920630002600105","article-title":"A resource-based theory of strategic alliances","volume":"26","author":"Das","year":"2000","journal-title":"J. Managem."},{"key":"B11","first-page":"37","article-title":"Is there a relationship between financial literacy, capital structure and competitiveness of SMEs?","volume":"1","author":"Delic","year":"2016","journal-title":"Ekonomski Vjesnik"},{"key":"B12","first-page":"371","article-title":"The effect of financial literacy and financial access to the performance of SMEs (Small and Medium Enterprises) in the trade sector of Padang city","volume":"10","author":"Dewi","year":"2018","journal-title":"Int. J. Prog. Sci. Technol."},{"key":"B13","doi-asserted-by":"publisher","first-page":"31","DOI":"10.5861\/ijrsm.2015.1304","article-title":"Financial literacy and SME firm performance","volume":"5","author":"Eniola","year":"2016","journal-title":"Int. J. Res. Stud. Managem."},{"key":"B14","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1177\/0972150917692063","article-title":"SME managers and financial literacy","volume":"18","author":"Eniola","year":"2017","journal-title":"Global Business Review"},{"key":"B15","doi-asserted-by":"publisher","first-page":"244","DOI":"10.4236\/ti.2013.44029","article-title":"The capital structure of business Start-Up: Is there a pecking order theory or a reversed pecking order?","volume":"4","author":"Fourati","year":"2013","journal-title":"Technol. Investm"},{"key":"B16","article-title":"\u201cDigitalisation and productivity: in search of the holy grail \u2013 Firm-level empirical evidence from EU countries\u201d","author":"Gal","year":"2019"},{"key":"B17","doi-asserted-by":"publisher","first-page":"1543","DOI":"10.1108\/MD-07-2019-0939","article-title":"Fostering digital transformation of SMEs: a four levels approach","volume":"58","author":"Garzoni","year":"2020","journal-title":"Managem. Deci."},{"key":"B18","doi-asserted-by":"publisher","first-page":"331","DOI":"10.1080\/00472778.2022.2051176","article-title":"Financial literacy in SMEs: a systematic literature review and a framework for further inquiry","volume":"62","author":"Grana-Alvarez","year":"2022","journal-title":"J. Small Busin"},{"key":"B19","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/08276331.2020.1793097","article-title":"Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support","volume":"35","author":"Hossain","year":"2020","journal-title":"J. Small Busin. Entrepreneur."},{"key":"B20","doi-asserted-by":"publisher","first-page":"985","DOI":"10.1108\/JSBED-01-2018-0021","article-title":"Is knowledge that powerful? Financial literacy and access to finance: An analysis of enterprises in the UK","volume":"25","author":"Hussain","year":"2018","journal-title":"J. Small Busin. Entrepreneur."},{"key":"B21","doi-asserted-by":"publisher","first-page":"273","DOI":"10.1093\/jeg\/lby021","article-title":"Regional inequality in europe: evidence, theory and policy implications","volume":"19","author":"Iammarino","year":"2019","journal-title":"J. Econ. Geography"},{"key":"B22","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/23311975.2022.2111036","article-title":"Entrepreneurs' competencies and sustainability of small and medium enterprises in Tanzania. A mediating effect of entrepreneurial innovations","volume":"9","author":"Ismail","year":"2022","journal-title":"Cogent Busin. Managem."},{"key":"B23","doi-asserted-by":"publisher","first-page":"2779","DOI":"10.1016\/j.jbankfin.2013.03.019","article-title":"Investment in financial literacy and saving decisions","volume":"37","author":"Jappelli","year":"2013","journal-title":"Journal of Banking and Finance"},{"key":"B24","doi-asserted-by":"publisher","first-page":"305","DOI":"10.1016\/0304-405X(76)90026-X","article-title":"Theory of the firm: Managerial behavior, agency costs and ownership structure","volume":"3","author":"Jensen","year":"1976","journal-title":"J. Financ. Econ."},{"key":"B25","doi-asserted-by":"publisher","first-page":"203","DOI":"10.17265\/2328-2185\/2021.03.004","article-title":"The relationship between access to finance and growth of SMEs in the Northern Province of Sri Lanka: financial literacy as a moderator","volume":"9","author":"Kalaieesan","year":"2021","journal-title":"Managem. Stud."},{"key":"B26","doi-asserted-by":"publisher","first-page":"1","DOI":"10.58829\/lp.5.1.2018.1-7","article-title":"Reconceptualization of empowerment principles by banking in supporting small and medium enterprises according to law No. 20 of 2008 concerning SMEs","volume":"5","author":"Karyadi","year":"2018","journal-title":"Lex Publica"},{"key":"B27","author":"Kergroach","year":"2021"},{"key":"B28","doi-asserted-by":"publisher","author":"Khan","year":"2022","DOI":"10.1016\/j.eneco.2022.105884"},{"key":"B29","doi-asserted-by":"crossref","DOI":"10.5089\/9781513574196.001","article-title":"\u201cMeasuring digital financial inclusion in emerging market and developing economies: a new index,\u201d","author":"Khera","year":"2021","journal-title":"IMF Working Paper WP\/21\/90"},{"key":"B30","article-title":"Digital technology, digital capability and organizational performance: a mediating role of digital innovation","author":"Khin","year":"2018","journal-title":"Int. J. Innovat. Sci."},{"key":"B31","first-page":"416","article-title":"A study on the influence of financial literacy on financial performance of small and medium enterprises in Ruiru Town, Kiambu County, Kenya","volume":"4","author":"Kimunduu","year":"2016","journal-title":"Int. J. Econ. Comm. Managem."},{"key":"B32","first-page":"666","article-title":"Financial literacy and financial performance of small and medium enterprises in Uganda","volume":"3","author":"Kizza","year":"2019","journal-title":"Int. J. Res. Innovat. Soc. Sci."},{"key":"B33","doi-asserted-by":"publisher","first-page":"102466","DOI":"10.1016\/j.ijinfomgt.2021.102466","article-title":"Digital transformation in business and management research: an overview of the current status quo","volume":"63","author":"Kraus","year":"2022","journal-title":"Int. J. Info. Manag"},{"key":"B34","doi-asserted-by":"publisher","first-page":"1463813","DOI":"10.1080\/23322039.2018.1463813","article-title":"Culture, financial literacy, and SME performance in Ghana","volume":"6","author":"Kwaku","year":"2018","journal-title":"Cogent. Econ. Finance"},{"key":"B35","doi-asserted-by":"publisher","first-page":"1416","DOI":"10.1126\/science.adi2336","article-title":"Learning skillful medium-range global weather forecasting","volume":"382","author":"Lam","year":"2023","journal-title":"Science"},{"key":"B36","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/23311975.2023.2176444","article-title":"The environmental accounting strategy and waste management to achieve MSME's sustainability performance","volume":"10","author":"Latifah","year":"2023","journal-title":"Cogent Busin. Managem."},{"key":"B37","first-page":"315","article-title":"A review of the capital structure theories","volume":"3","author":"Luigi","year":"2009","journal-title":"Ann. Faculty Econ"},{"key":"B38","first-page":"3","article-title":"\u201cResource based view (RBV) of competitive advantage: an overview,\u201d","volume-title":"Resource Based View: Concepts and Practices","author":"Madhani","year":"2009"},{"key":"B39","doi-asserted-by":"publisher","first-page":"120469","DOI":"10.1016\/j.techfore.2020.120469","article-title":"Impact of COVID-19 on the travel and tourism industry","volume":"163","author":"Marinko","year":"2021","journal-title":"Technol. Forecast. Soc. Change"},{"key":"B40","doi-asserted-by":"publisher","first-page":"642","DOI":"10.1016\/j.jbusres.2020.10.033","article-title":"Digital transformation and customer value creation in Made in Italy SMEs: a dynamic capabilities perspective","volume":"123","author":"Matarazzo","year":"2021","journal-title":"J. Busin. Res."},{"key":"B41","doi-asserted-by":"publisher","first-page":"333","DOI":"10.1016\/j.emj.2020.01.002","article-title":"The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - a comparison between SMEs and large enterprises","volume":"39","author":"M\u00fcller","year":"2020","journal-title":"Eur. Managem. J"},{"key":"B42","doi-asserted-by":"publisher","first-page":"187","DOI":"10.1016\/0304-405X(84)90023-0","article-title":"Corporate financing and investment decisions when firms have information that investors do not have","volume":"13","author":"Myers","year":"1984","journal-title":"J. Finan. Econ."},{"key":"B43","doi-asserted-by":"publisher","first-page":"159","DOI":"10.5897\/AJBM2020.8985","article-title":"Loans and growth of small-scale enterprises in Uganda: a case study of Kampala Central business area","volume":"14","author":"Nzibonera","year":"2020","journal-title":"Afric. J. Busin. Managem."},{"key":"B44","volume-title":"Digital Transformation in the Age of COVID-19: Building Resilience and Bridging Divides","year":"2020"},{"key":"B45","unstructured":"2022\n          OECD\/INFE Toolkit For Measuring Financial Literacy And Financial Inclusion\n          \n          2022"},{"key":"B46","year":"2023"},{"key":"B47","doi-asserted-by":"publisher","first-page":"439","DOI":"10.1080\/1389224X.2022.2082500","article-title":"Examining the relationship between farmers' characteristics and access to agricultural extension: empirical evidence from northern Uganda","volume":"29","author":"Okello","year":"2023","journal-title":"J. Agricult. Educ. Extens"},{"key":"B48","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/23311975.2021.1920676","article-title":"Impact of financial resource building effort on financial resource availability among small and medium enterprises","volume":"8","author":"Owusu","year":"2021","journal-title":"Cogent Busin. Managem."},{"key":"B49","doi-asserted-by":"publisher","first-page":"154","DOI":"10.21511\/imfi.16(1).2019.12","article-title":"Financial literacy as a moderator linking financial resource availability and SME","volume":"16","author":"Owusu","year":"2019","journal-title":"Invest. Managem. Financ. Innovat."},{"key":"B50","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1080\/23311975.2020.1743618","article-title":"The effects of financial literacy and materialism on the savings decision of Generation Z Indonesians","volume":"7","author":"Pangestu","year":"2020","journal-title":"Cogent Busin. Managem."},{"key":"B51","first-page":"263","article-title":"Access to finance and sustainability of small and medium enterprises in central Uganda","volume":"5","author":"Patrick","year":"2021","journal-title":"Int. J. Res. Innovat. Soc. Sci."},{"key":"B52","doi-asserted-by":"publisher","first-page":"1352","DOI":"10.1108\/MF-06-2021-0260","article-title":"Financial literacy of entrepreneurs: A systematic review","volume":"9","author":"Prakash","year":"2022","journal-title":"Managerial Finance"},{"key":"B53","first-page":"1","article-title":"Financial sustainability based on resource-based view theory and knowledge-based view theory","volume":"25","author":"Putra","year":"2021","journal-title":"Acad. Account. Finan. Stud. J."},{"key":"B54","doi-asserted-by":"publisher","first-page":"1","DOI":"10.5897\/JASD2015.0331","article-title":"Financial literacy for developing African countries: A review of concept, significance, and research opportunities","volume":"8","author":"Refera","year":"2016","journal-title":"J. African Stud. Dev."},{"key":"B55","doi-asserted-by":"crossref","unstructured":"\u201cRethinking financial deepening: stability and growth in emerging markets,\u201d\n          \n          \n            \n              Sahay\n              R.\n            \n            \n              Cih\u00e1k\n              M.\n            \n            \n              N'Diaye\n              P.\n            \n            \n              Barajas\n              A.\n            \n            \n              Bi\n              R.\n            \n            \n              Ayala\n              D.\n            \n          \n          IMF Staff Discussion Note SDN\/15\/08\n          \n          2015","DOI":"10.5089\/9781498312615.006"},{"key":"B56","doi-asserted-by":"publisher","first-page":"411","DOI":"10.1016\/j.bushor.2016.03.004","article-title":"Solving the crisis of immediacy: how digital technology can transform the customer experience","volume":"59","author":"Salvatore","year":"2016","journal-title":"Busin. Horiz"},{"key":"B57","first-page":"389","article-title":"\u201cThe role of digital finance to strengthen financial inclusion and the growth of SME in Indonesia\u201d","author":"Shofawati","year":"2019","journal-title":"the 2nd International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP)"},{"key":"B58","doi-asserted-by":"publisher","first-page":"2174477","DOI":"10.1080\/23311975.2023.2174477","article-title":"Does SME's financing decisions follow pecking order pattern? The role of financial literacy, risk preference, and home bias in SME financing decisions","volume":"10","author":"Sulistianingsih","year":"2023","journal-title":"Cogent Busin. Managem."},{"key":"B59","doi-asserted-by":"crossref","unstructured":"Svirydzenka\n              K.\n            \n          \n          WP\/16\/5, IMF Working Paper\n          \n          2016","DOI":"10.5089\/9781513583709.001"},{"key":"B60","doi-asserted-by":"publisher","first-page":"102192","DOI":"10.1016\/j.ijinfomgt.2020.102192","article-title":"The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice","volume":"25","author":"Thanos","year":"2021","journal-title":"Int. J. Inform. Managem"},{"key":"B61","first-page":"84","article-title":"The impact of financial literacy on business performance","volume":"3","author":"Usama","year":"2019","journal-title":"Int. J. Res. Innovat. Soc. Sci."},{"key":"B62","doi-asserted-by":"publisher","first-page":"889","DOI":"10.1016\/j.jbusres.2019.09.022","article-title":"Digital transformation: a multidisciplinary reflection and research agenda","volume":"122","author":"Verhoef","year":"2021","journal-title":"J. Bus. Res"},{"key":"B63","doi-asserted-by":"publisher","first-page":"255","DOI":"10.29313\/mimbar.v34i2.2914","article-title":"Financial literacy model at Micro Small Medium Enterprise (MSMEs)","volume":"34","author":"Widiyati","year":"2018","journal-title":"MIMBAR: Jurnal Sosial dan Pembangunan"},{"key":"B64","doi-asserted-by":"publisher","first-page":"102513","DOI":"10.1016\/j.ijinfomgt.2022.102513","article-title":"Digital platforms and SMEs' business model innovation: exploring the mediating mechanisms of capability reconfiguration","volume":"65","author":"Xie","year":"2022","journal-title":"Int. J. Inform. Managem"},{"key":"B65","doi-asserted-by":"publisher","first-page":"1","DOI":"10.3390\/su11102990","article-title":"How does financial literacy promote sustainability in SMEs? A developing Country perspective","volume":"11","author":"Ye","year":"2019","journal-title":"Sustainability"},{"key":"B66","first-page":"240","article-title":"The knowledge-based view framework: capability of knowledge integration leads to capability of innovation or imitation","volume":"7","author":"Zhao","year":"2019","journal-title":"Int. J. Econ. Commer. Managem."}],"container-title":["Frontiers in Big Data"],"original-title":[],"link":[{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/fdata.2024.1448571\/full","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2024,12,19]],"date-time":"2024-12-19T06:25:34Z","timestamp":1734589534000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/fdata.2024.1448571\/full"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2024,12,19]]},"references-count":66,"alternative-id":["10.3389\/fdata.2024.1448571"],"URL":"https:\/\/doi.org\/10.3389\/fdata.2024.1448571","relation":{},"ISSN":["2624-909X"],"issn-type":[{"value":"2624-909X","type":"electronic"}],"subject":[],"published":{"date-parts":[[2024,12,19]]},"article-number":"1448571"}}