Quest for Social Inclusion on Digital Platform: Evidence of Gender-differentiated Effects on Micro and Small Businesses in China

Abstract Amidst the global surge in digitalization, China emerges as a frontrunner, boasting a digital economy constituting 40 percent of its GDP and engaging over 1 billion users. Despite this, quantitative analyses on the socioeconomic impacts, particularly concerning gender inclusivity, remain sparse. This study addresses this gap by examining a sample of over 30,000 Chinese micro and small enterprises (MSEs) operating on a leading fintech platform. Our findings indicate a significant revenue boost for MSEs following platform registration, with pronounced benefits accruing to female entrepreneurs and marginalized populations. The adoption of digital payment systems and the availability of non-discriminatory credit are identified as pivotal mechanisms. These findings offer valuable insights into the transformative societal impact of digital platforms and mechanisms for fostering socioeconomic inclusivity.