KAPALONG COLLEGE OF AGRICULTURE, SCIENCES AND TECHNOLOGY
Member and Accredited by ALCUCOA/ Institutionally Recognized and Under CHED-UniFAST
RDES FORM 15
CONCEPT PAPER TEMPLATE
PROGRAM:
COURSE (SUBJECT) TITLE:
NAME OF STUDENT/S:
PROPOSE TITLE:
The Influence of Financial Technology (FinTech) and Financial Inclusion Towards
the Business Development Among SMEs in Kapalong, Davao del Norte
COURSE INSTRUCTOR:
COMPONENTS:
DESCRIPTIONS
Problematic Issue
Problematic Issues Financial inclusion and FinTech adoption have long been
acknowledged as economic growth drivers, particularly among SMEs. However,
many SMEs in Kapalong, Davao del Norte, continue to have difficulties in obtaining
financial services, limiting their ability to grow and sustain operations. This difficulty
is caused by a number of circumstances, including Access to banking and credit
facilities is limited, particularly for SMEs in rural areas. Businesses are cautious to
utilize digital financial tools due to a lack of confidence and understanding in
FinTech services. Regulatory and infrastructure hurdles, such as insufficient digital
access and gaps in financial literacy. This study looks into how FinTech adoption
and financial inclusion affect company development among SMEs in Kapalong,
addressing the persistent financial constraints that impede their growth.
Research Gap and Urgency
KCAST RDE Agenda
Previous studies on FinTech adoption and financial inclusion have primarily
focused on urban companies or national trends, highlighting a research need and
urgency. There is a scarcity of specialized research on the unique issues that rural
SMEs face, particularly in places like Kapalong, Davao del Norte. The urgency of
this investigation is enhanced by:
1. Rural communities continue to underutilize FinTech services, despite their fast
rise.
2. Government initiatives for financial inclusion, including digital banking and MSME
financing programs.
3. SMEs must adapt to digital financial instruments to remain competitive in a
changing economic world.
By addressing these research gaps, this study will provide data-driven insights to
assist financial institutions, governments, and SMEs in developing strategies to
improve financial access and digital adoption.
This research is aligned with the Kapalong College of Agriculture, Sciences, and
Technology's (KCAST) Research, Development, and Extension (RDE) Agenda.
1.Economic Development and Entrepreneurship - Increasing financial inclusion and
capital access to help SMEs grow.
2.Technology Innovation and Digital Transformation - Encouraging the use of
FinTech services to boost corporate productivity.
3.Sustainable Development and Inclusive Growth - Increasing access to digital
financial services for rural SMEs, hence eliminating financial inequality.
The outcomes of this study will help KCAST achieve its purpose of supporting
equitable economic growth by increasing financial literacy, digital access, and
Quezon St., Maniki, Kapalong,
Davao del Norte
Kapalong College of Agriculture, Sciences
and Technology
0945-4602-108 I 0970-0251-622
officeofthevprde@kcast.edu.ph
KAPALONG COLLEGE OF AGRICULTURE, SCIENCES AND TECHNOLOGY
Member and Accredited by ALCUCOA/ Institutionally Recognized and Under CHED-UniFAST
Research Questions/
Research Objectives
Theoretical Foundation
strategic policy suggestions. The outcomes of this study will help KCAST achieve
its purpose of supporting equitable economic growth by increasing financial literacy,
digital access, and strategic policy suggestions.
1. What is the level of financial inclusion among Kapalong's SMEs?
2. What variables influence the adoption of FinTech by SMEs?
3. How does financial inclusion affect business growth?
4. What problems do SMEs have while adopting FinTech services?
Theoretical Foundation This research is based on the following theoretical
frameworks:
1. The Diffusion of Innovation Theory (Rogers, 1962) explains how FinTech
adoption spreads across SMEs and the factors that impact acceptance or
resistance.
2. Financial Inclusion Theory suggests that increased access to financial services
contributes to economic participation and business growth, emphasizing the
importance of banking and other financing alternatives.
3. The Technology Acceptance Model (TAM) (Davis, 1989) examines how
perceived usefulness and ease of use affect the propensity of SMEs to incorporate
FinTech into their operations.
4. According to the Resource-Based View (RBV) Theory, SMEs with better financial
access and digital tools have a competitive edge and improve their business
performance.
These theories offer a structured framework for examining the impact of FinTech
and financial inclusion on SME company development in Kapalong, Davao del
Norte.
Research Design
This study uses a quantitative research method using a descriptive-correlational
methodology to investigate the relationship between FinTech adoption, financial
inclusion, and business growth.
Instrument and Data
A structured survey questionnaire will be delivered to SMEs. The questionnaire
contains:
Section 1: Demographic Information Includes Age, Gender, Educational
Background, and Business Experience. Type of SME firm and length of operation.
Section 2: Financial Inclusion Provides access to banking services and digital
financial channels. Availability and use of financial services. Financial transactions
are affordable and cost effective.
Section 3: FinTech Adoption: Understanding and using FinTech services (mobile
banking, e-wallets, online financing). The perceived benefits and challenges of
implementing FinTech.
Section 4: Business Development. Indicators of growth include revenue, client
reach, and financial stability. Challenges in obtaining financial services for
business expansion.
Respondents/Participants
The target population is SMEs operating in Kapalong, Davao del Norte.
Quezon St., Maniki, Kapalong,
Davao del Norte
Kapalong College of Agriculture, Sciences
and Technology
0945-4602-108 I 0970-0251-622
officeofthevprde@kcast.edu.ph