Fintech and Social Entrepreneurship: Mechanisms for Sustainable Development (Financial and credit activity problems of theory and practice)

Summary

• The study explores the integration between fintech and social entrepreneurship, showing how digital tools facilitate financial inclusion, reduce transaction costs, and enhance the efficiency of social enterprises [p.1].p.1
• The share of firms using banks to finance investment averaged 38.25% in Poland and 37.71% in Germany, whereas in the Netherlands it stood at only 16.94% [p.7].p.7
• Internet usage among populations averaged 90.61% in the Netherlands and 87.17% in Finland, while reaching 43.74% in Ukraine [p.8].p.8

Key insights

1. Fintech provides the financial, social, and technological mechanisms required to scale socially oriented business models and improve financial inclusion [p.1, p.5].p.5
2. Crowdfunding platforms and P2P lending play vital roles in funding social projects, though cultural and regulatory differences dictate their overall effectiveness [p.3].p.3
3. Traditional banking infrastructure has reached full capacity in Northern and Western European countries, while transition economies like Ukraine face significant infrastructure and coverage gaps [p.6, p.7].p.6
4. A lower reliance on bank financing for investments in the Netherlands points to a higher orientation towards non-banking fintech channels and market sources [p.7].p.7
5. Digital accessibility correlates with fintech adoption, where high internet usage enables online insurance and P2P crowdfunding solutions [p.8].p.8