The number of small businesses springing up every year is in their hundreds. Many of these startups are patterned to operate on a small scale, pending when they get the relevant go-ahead to move on to becoming more prominent brands.
There’s no gainsaying that finance is one of the factors that dictate the direction a company would take. The absence or insufficient capital is similar to the downfall or low-scale operation of a business. On the other hand, a company that has sufficient funds and the backing from relevant institutions would be sure of remaining relevant for long.
The emergence of blockchain technology took the world by the storm. It was an unexpected revolution of sorts that was first, targeted at reinventing the global financial system, using cryptocurrencies as the primary tool. Since then, the technology had continued to wax stronger with the deployment in different sectors of the worldwide economy.
It has now come to the doorsteps of the Micro, Small, and Medium Enterprises (MSMEs). The community of blockchain enthusiasts would remain thankful for this, especially with the impressive features and chances of massive adoption, as accentuated by the prospects of the Tokoin blockchain
CURRENT CHALLENGES FACED BY STARTUPS
Startups or emerging companies would remain in that limited scale of operation except they do something drastic about it. As new companies/startups that are joining the highly competitive business world, they tend to leave a lot of cash on the table when they ignore some things. The same also applies to when they have a limited number of persons or institutions that are backing them.
Such is the sad tale in the business hemisphere where the more significant and established brands are pushing forward for more relevance while the smaller companies are trying to capture some of the market shares. That is not leaving out the fact that most of these startups have limited funds or finance to scale up their operations.
While investors, such as banks that refuse them loans are to be blamed on one part, a more considerable bulk of the blame goes to the emerging companies that have not established their reputation. It then becomes an arduous task for the expected investors to make a buy into the company(ies) that they see no reputable system of operation in it.
THE TOKOIN BLOCKCHAIN TO THE RESCUE
Gone are those days when emerging companies/startups would be at the wit’s end on the best ways to facilitate their operations. The highly competitive fiat business environment that is dominated by more prominent companies doesn't help matters. The latter, instead, continues to explore the tangle in a bid to frustrate the chances of small and medium businesses in the business world. That is not leaving out the inability of MSMEs to have a concise reputation system that would help them in gaining the trust of both suppliers/merchants and the buyers.
Nevertheless, the Tokoin blockchain provides the needed infrastructure that would help these emerging companies to have a firm stand in the global business community. It facilitates that with the provision of a modern but decentralized business ecosystem under the regulation of blockchain. The Tokoin blockchain aims at the integration of startups, the suppliers, financial intermediaries/investors, and the service providers. The unification of these parties is in tandem with the quest of the Tokoin blockchain to have an unbiased but efficient ecosystem for active trades.
While that is a stepping stone towards the creation of strategic partnerships among the participants, Tokoin also leverages that to capture and process the business/transaction information of the users. For instance, it ensures that Micro, Small, and Medium Enterprises (MSMEs) on the platform transact through its Tokoin dApp.
Through that, the platform can capture and collate the data of such companies. It then proceeds to convert it to a valuable asset that would be used as a marker for enhancing the trusted reputation of MSMEs on the platform. By that, these startups would have a solid base for gaining access to finances, which were hitherto, inaccessible because of their inability to provide a viable medium for verifying their reputation.
Worthy of mention is that the Tokoin platform creates a direct link/synergy among the participants, with particular consideration for businesses/MSMEs and the financial intermediaries/investors. Therefore, we’re having a scheme of financial inclusion, where loans and credits can be sourced and obtained, provided the startups to fulfil the requirements.
The blockchain technology is a messiah for many reasons. It has not only established an intermediary-free system of transaction/communication but also helps the users to build their reputations.
Such is the case with the Tokoinblockchain that aims at creating a reputable system for startups, using blockchain technology as the foothold.
THE DIGITAL BUSINESS IDENTITY
The Digital Business Identity is a dedicated reputation system on the Tokoin blockchain. It is constituted to help in the establishment of Micro, Small, and Medium Enterprises (MSMEs) as an acceptable credibility scoring mechanism.
The ID ensures that relevant information about the operations of startups are collated and published on its network for everyone to see. That way, investors would be able to decipher the modus operandi of an MSME, which, in turn, helps them to make an informed investment decision.
LOAN/CREDIT SCHEMES
As stated earlier, finance is one of the factors that buoy the success of a business. The tenability of that depends on how investors view the company. Therefore, the establishment of the Digital Business Identity is a medium for investors to decide for or against providing credits/loans to budding MSMEs registered on its blockchain.
In the case that a startup scales through the relevant checks, then the investors/financial intermediaries like banks would then provide the loan. The smart contract would underwrite that.
FINAL WORDS
The overall aim of the Tokoin blockchain is to create and establish the Digital Identity for Businesses as a reputation mechanism for Micro, Small, and Medium Enterprises (MSMEs) registered on the network. That way, the ID then becomes a reputation system that helps to facilitate the acceptability of its credibility scoring by investors/financial institutions.
Hence, it’s a welcome development, because startups now have a feasible medium to boost their reputation and get the needed finance to boost their operations.
Likewise, the decentralized financial model and the inclusiveness of other trade parties are indicators that Micro, Small, and Medium Enterprises (MSMEs) on the Tokoin blockchain are favoured to gain more tractions in the future.
USEFUL LINKS;
Website: https://www.tokoin.io/
Telegram Chat: http://t.me/tokoinglobal
Twitter: https://twitter.com/TokoinOfficial
Facebook: https://www.facebook.com/TokoinOfficial
Medium: https://medium.com/@tokoin
Instagram: https://www.instagram.com/tokoinofficial
Reddit: https://www.reddit.com/user/TokoinOfficial
AUTHORS DETAILS
Bitcointalk username- arnoldrimmer
Bitcointalk profile link- https://bitcointalk.org/index.php?action=profile;u=31787;sa=summary