2025, Vol. 8, Issue 1

author(s)
Emmanuel Agada Ediri

abstract
Driven by the various operational difficulties faced by SMEs in Nigeria and other developing economies, as well as the growing importance of financial technologies in modern business operations, and the necessity for businesses to embrace digital financial tools, this study explored the impact of financial technologies on the performance of small and medium-sized enterprises (SMEs) in Nsukka Urban, Enugu State, located in South East Nigeria. Utilizing a logistic regression model, the study analysed data collected from approximately 301 SMEs within the study area to determine the effect of financial technologies on business performance, specifically in terms of profitability, overall business success, and sales growth. The findings of the analysis showed a high and significant adoption of financial technologies among SMEs in Nsukka Urban. Additionally, the logistic regression results indicated that the integration of financial technologies into business operations had a notable positive impact on profitability, overall financial performance, and sales. Specifically, SMEs that frequently utilized financial technologies were more likely to experience increased profits, improved financial outcomes—including revenue and net profit-and higher sales volumes. These findings highlight the essential role of financial technologies in enhancing the performance of SMEs in developing economies. By leveraging digital financial tools, businesses can overcome common operational challenges, improve financial stability, and achieve better market competitiveness. The study highlights the need for further promotion and integration of financial technologies within the SME sector to drive sustainable growth and economic development.