Access to Finance in Transition Economies: The Role and Prospects of Small and Medium-sized Enterprises
Veronika Dmytrovska1* , Tetiana Podvirna2 , Maksym Mikhliaiev3 ,
Svitlana Korzyk4 , Iryna Hanzhurenko5
Abstract. The purpose of the study is to systematically analyze the barriers to access to finance faced by small and medium-sized enterprises in transition economies, as well as to systematize solutions to address them through innovation. This is a systematic literature review that has the characteristics of a comparative analysis and includes 38 sources (2018–2024), scientific publications, and reports of international financial institutions. A multilevel system of barriers is identified, among which financial barriers prevail with a percentage of 89% in the reviewed literature, but they exist in close interaction with institutional, economic and social aspects. The empirical literature was analyzed to find that financial literacy and access to finance have a non-linear relationship, with a critical transition point between low and medium literacy levels of 23% to 47%. The systematization of data on digital financial solutions showed unevenly high adoption rates: basic technologies reached the highest level of adaptation at 78–82%, while innovative solutions are at the first level of adoption at 12–23%. The report on the work of foreign financial institutions revealed flexibility as one of the strengths of successful support programs, with a radical increase in individual instruments by more than 500% in the 2022–2024 crisis. The results confirm the transformative potential of technological innovations to overcome traditional barriers to finance and demonstrate the importance of an integrated approach.
Keywords: financial barriers, digital technologies, lending, institutional environment, economic transformation, innovative solutions