Impact of fnancial literacy, perceived access to fnance, ICT use, and digitization on credit constraints : evidence from Qatari MSME importers

This study investigates the role of fnancial literacy (FL), perceived access to fnance (PAF), information communication technology (ICT) usage, and digitization in alleviat‑ ing the level of credit constraint that micro, small, and medium enterprises (MSMEs) face in an emerging market. We draw on the economic research theories of human capital, knowledge-based view, and lifecycle hypothesis to explain the relation‑ ship between the variables. Using survey data collected from 333 MSME importers in Qatar-a country with heavy reliance on foreign goods-we fnd strong evidence that FL, PAF, ICT usage, and digitization are key determinants of Qatari MSME access to credit. In particular, PAF and FL are signifcant and have their expected signs in almost all the Probit regressions. For ICT usage and digitization, although they are key determinants of credit constraints, the fndings are more sensitive and dependent on the type of fnancing and the resulting type of credit constraint.