Evaluation of Inclusive Financial Models in Encouraging Capital Accessibility for Social Startups

Abstract

Access to capital remains a significant challenge for social startups, which prioritize creating social impact over generating financial profit. In response, inclusive financial models have emerged as promising alternative approaches by integrating digital technology, microfinance services, and public policy support. This study aims to evaluate the effectiveness of such models in enhancing capital accessibility for social startups through a systematic literature review of international academic journals. The findings indicate that, although inclusive financial models have succeeded in expanding the reach of financial services to previously excluded groups, their effectiveness remains heavily dependent on the structural readiness of the surrounding ecosystem. This includes the availability of digital infrastructure, the financial literacy capacity of startup founders, and the presence of supportive regulatory frameworks. Therefore, the development of inclusive financial strategies must consider these contextual structural factors in order to create sustainable and long term impact for the growth and resilience of social startups.