Beyond Barriers: An Integrative Framework of E-Commerce Adoption for Financial Inclusion and Growth of SMEs in Kenya

Abstract

Small and Medium Enterprises (SMEs) are the cornerstone of the Kenyan economy, contributing significantly to GDP and employment. Despite their importance, they face persistent barriers to growth, including severe constraints in accessing formal credit, limited market reach, and operational inefficiencies. Traditional financial institutions often fail to serve them due to high collateral requirements and cumbersome processes. This paper proposes a novel digital FinTech platform designed to overcome these challenges and foster SME resilience and growth. We present a comprehensive conceptual framework that integrates Enterprise Application Integration (EAI), Service-Oriented Architecture (SOA), and Artificial Intelligence (AI) to create a holistic digital ecosystem. This study outlines the architectural methodology for building an intelligent ecosystem and demonstrates how technological synergy addresses core SME pain points. The research contributes to the literature on financial inclusion and digital transformation by providing a scalable model for leveraging technology to de-risk lending, enhance operational efficiency, and unlock new market opportunities for SMEs.