Title: Technology-Enhanced Financial Literacy and Risk Management Models for Small and Medium Enterprise Growth
Authors: noch Oluwabusayo Alonge, Emmanuel Damilare Balogun
Volume: 9
Issue: 3
Pages: 420-433
Publication Date: 2025/03/28
Abstract:
Small and medium enterprises (SMEs) are vital contributors to economic growth and employment generation worldwide. However, their sustainability and expansion are often hindered by inadequate financial literacy and ineffective risk management practices. This paper investigates the role of technology in bridging these gaps, focusing on innovative financial literacy tools and risk management models designed to support SME growth. The study explores various technology-enhanced solutions, such as digital financial education platforms, mobile applications, and AI-driven advisory systems, which provide SMEs with accessible, customized, and actionable financial insights. Additionally, it examines the application of big data analytics, machine learning, and blockchain technologies in building robust risk assessment frameworks tailored to the unique challenges faced by SMEs. Findings reveal that technology-enabled financial literacy initiatives significantly enhance SMEs' ability to make informed financial decisions, improve cash flow management, and access financing opportunities. Similarly, technology-driven risk management models mitigate vulnerabilities by offering predictive analytics, fraud detection, and dynamic risk monitoring. The research underscores the importance of integrating these technological solutions into SME operations and highlights the need for supportive policies and collaborative efforts between governments, private sectors, and financial institutions. Leveraging technology not only addresses the persistent challenges of financial literacy and risk management but also fosters resilience and long-term growth among SMEs. This paper contributes to the ongoing discourse on SME development by presenting actionable insights into the transformative potential of technology in creating sustainable and inclusive economic ecosystems. Keywords: Financial Literacy, Risk Management, Small and Medium Enterprises (SMEs), Technology Adoption, Digital Financial Services, Artificial Intelligence (AI), Blockchain, Internet of Things (IoT), Decentralized Finance (DeFi), SME Growth and Resilience, Predictive Analytics, Gamification in Financial Education, Public-Private Partnerships, Digital Transformation, Innovation in Risk Management Practices