Impact of Financial Inclusion on Digitalization and GDP Contribution in the SME Sector of Bangladesh

The economic framework of Bangladesh is significantly dependent on small and medium-sized enterprises (SMEs). The small and medium-sized firms have played a crucial role in multiple facets of the economy, such as gross domestic product (GDP), employment, exports, and poverty reduction. The utilization of cutting-edge technology is of paramount importance in accelerating the economic impact of the industry and thereby contributing to the sustainable development of the nation. Hence, financial assistance is one of the significant factors in the digitalization process of any business sector. The study set out to determine the impact of bank loans and non-banking financial organization support on the GDP contributions of SMEs to Bangladesh's economic development. The research study has used SPSS to evaluate secondary data that has been gathered from a variety of public sources. Institutional finance was found to have a strong relationship with the percentage of GDP backed by SMEs. Professional financial services are available to SMEs through institutional financing organizations, including banks and non-banking monetary associations. Successful small and medium-sized enterprises (SMEs) can benefit greatly from the knowledge and assistance offered by these financial institutions. Although small and medium-sized enterprises (SMEs) typically look to banks for loans, it is important to encourage them to consider other sources of capital, such as venture capital, trade credit, microloans, and crowd funding.