Abstract

Micro and small enterprises (MSEs) constitute a vital component of economic development in developing countries by generating employment, promoting entrepreneurship, and supporting export diversification. However, limited access to finance remains a major constraint restricting the growth and international competitiveness of these enterprises. Microfinance institutions (MFIs) have emerged as important financial intermediaries that expand financial inclusion by providing credit and financial services to underserved entrepreneurs. This study examines the relationship between microfinance development and the growth of export-oriented micro and small enterprises in developing countries using secondary data from international databases such as the World Bank, Global Findex, and Microfinance Information Exchange. The study analyzes trends in microfinance penetration and export participation and evaluates their association with enterprise development indicators. The findings suggest that improved access to microfinance enhances working capital availability, promotes productive investment, and facilitates the integration of small enterprises into global value chains. However, the effectiveness of microfinance in promoting export growth depends on complementary factors such as infrastructure development, technological capability, and trade facilitation policies. The study highlights the need for integrated financial and trade policies that strengthen microfinance institutions while supporting export-oriented small enterprises in developing economies.

Keywords: Microfinance, Financial Inclusion, Export-Oriented Enterprises, Micro and Small Enterprises (MSEs), Global Value Chains, Developing Countries