Abstract:
The present study examines the relationship between financial inclusion and socioeconomic transformation in the specific context of Mbarali-Mbeya. The study's target population
comprises all participants involved in the rice-farming supply chain. Employing a correlation
research design and a multistage sampling technique, a total of 210 units of inquiry were collected.
Data was gathered by administering questionnaires and subsequently subjected to inferential
analysis using various statistical methods such as multiple regressions, logit analysis, and multiple
correlations. The analysis findings revealed that the accessibility, adequacy, affordability, safety,
and sustainability of financial services and products were aligned with the latent variable of
financial inclusion. Furthermore, the study identified several positive and significant determinants
of financial inclusion, namely: management innovation within financial institutions, the presence
of facilitating and innovative financial infrastructures, financial literacy, and formal operating
mechanisms.Additionally, the study found that surplus outputs, quality produce, increased sales
revenue, per capita income, and access to quality social services positively and significantly
influenced socio-economic transformation. Based on these results, the study provides
recommendations for achieving sustainable socio-economic transformation. It emphasizes the
importance of effectively including financial users in the financial system to facilitate socioeconomic progress. Furthermore, the study suggests that universal accessibility to adequate,
affordable, and high-quality financial products should be prioritized to promote financial inclusion.
Additionally, sustaining management innovation within financial institutions, developing robust
financial infrastructures, promoting financial literacy, and formalizing businesses are all crucial in
attaining the necessary conditions for financial inclusion and subsequent socio-economic
transformation.
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