Determinants of Financial Inclusion Among Selected SMEs: Preliminary Evidence from Selangor, Malaysia

This study examines the factors influencing financial inclusion among selected Small and Medium Enterprises (SMEs) in Selangor, Malaysia. Using data collected from 60 SMEs across Gombak, Shah Alam, and Klang, the research applies both descriptive and inferential statistical analyses through SPSS statistical packages. The findings reveal that while entrepreneurs demonstrate a high level of awareness regarding inclusive financial practices, the actual adoption of digital and Shariah-compliant financial services remains inconsistent. The results indicate that technology adoption and Islamic finance (IF) significantly influence financial inclusion, while Islamic finance adoption contributes positively to societal well-being. The study concludes that achieving inclusive finance requires stronger integration between technology, Islamic financial instruments, and financial literacy initiatives. The findings should be interpreted in relation to the selected ample rather than generalised to all Malaysian SMEs. The findings provide preliminary evidence that digital technology and Shariah-compliant financial services may be important pathways for strengthening SME financial inclusion. Future research should expand the sample size and employ mixed-method approaches to explore behavioural factors influencing financial inclusion and Islamic finance adoption across diverse regions in Malaysia.

Islamic Finance; Financial Inclusion; Small Medium Enterprises, Technology Adoption, Islamic Finance

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