This scholarly article delves into the evolving landscape of microfinance in China, specifically focusing on microcredit and its impact on small en-terprise entrepreneurs. Approximately 30% of China’s population faces barriers in accessing traditional banking services due to issues like geographical constraints and limited credit history. The study concentrates on economically disadvantaged regions, particularly along the coastal provinces, using qualitative data methods. Through online focus groups with local microcredit executives and interviews with digital product management experts, the research highlights the vital role of microcredit in empowering micro-entrepreneurs in marginalized communities. However, challenges such as credit qualification regulations hinder its widespread adoption. The study underscores the importance of digital transformation in microfinance and advocates for comprehensive digitization strategies to enhance financial service accessibility for underserved communities. It also emphasizes the crucial role of regulatory policies in promoting financial inclusion. The unique aspect of this review lies in its indepth analysis of the Chinese microfinance landscape, incorporating firsthand insights from practitioners and digital experts. The findings have significant implications for policymakers and practitioners in China and beyond, aiming to improve access to financial services.
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