Theoretical foundations of inclusive financial practices and their impact on innovation and competitiveness among U.S. SMEs

This review paper explores the theoretical foundations of inclusive financial practices and their impact on innovation and competitiveness among U.S. SMEs. The study examines key concepts such as financial equity, innovation diffusion, and market competitiveness by developing a comprehensive conceptual framework. It proposes a model linking inclusive financial practices to broader economic outcomes, including job creation and global market positioning. Through an analysis of existing literature and theoretical perspectives, the paper highlights how tailored loan products and flexible repayment terms can drive innovation, enhance competitiveness, and contribute to sustainable economic growth. The implications for policymakers, financial institutions, and SMEs are discussed, along with suggestions for future research further to understand the relationship between financial inclusivity and SME success. The findings underscore the importance of embracing inclusive financial practices to foster a dynamic and resilient SME sector. Keywords: Inclusive Financial Practices, SMEs, Innovation, Competitiveness, Financial Equity, Economic Growth.