Micro, Small, and Medium Enterprises (MSMEs) became the last resort for many after the global financial windfall of 2009. Despite the enormous prospects of the small-scale industry, it is sad to note that few funds are channeled to trigger a boom.
Hence, the industry that could have boomed to be one of the most successful in the world is instead, battling to overcome its challenges. These problems informed the reason behind the launch of Tokoin, a blockchain platform dedicated to overseeing the growth of the small-scale industry in a decentralized ecosystem.
Evaluating the Challenges
We must have some ideas about the current challenges impeding the growth of the Micro, Small, and Medium Enterprises (MSMEs).
Top on the list is the absence of trust. Ideally, banks, which are the primary loan issuers, find it difficult to issue loans to startups. The primary reason behind this is the lack of a valid identity or reputation system of the startups.
There is also the challenge of high-interest rates that these startups find difficult to accept. Hence, there lack total access to funds that could have helped in boosting their operations.
The Tokoin Solution
As earlier noted, Tokoin is a blockchain-based platform that aims at boosting the fortunes of the Micro, Small, and Medium Enterprises (MSMEs). It accomplishes the features through a variety of features, including:
• Digital Business Identity
It’s worth noting that one of the main drawbacks against the limited funding to startups is the “bankable reputation.” The fact that these companies are emerging and have little or no experience in overcoming risks make it challenging for banks to fund them. After all, nobody would want to put his hand where his mouth isn’t.
On that note, Tokoin reinvented the process by ensuring its significant participants, MSMEs sign up for a digital business identity. It is meant to contain all the activities of the registered businesses. That way, the profile of the companies would be seamlessly built, which increases the chances of obtaining loans in the future.
• Credibility Scoring
It’s absurd to seek funds when the credit scoring of the company is either in the red or doesn’t meet the standard requirements.
Therefore, the Tokoin blockchain empowers MSMEs to have a credible credit scoring. Ideally, every transaction occurs on the blockchain. That paves the way for the platform to gain access to and store the credit activity of each company. That would later be used as a mortgage in the future when the company needs loans/financial interventions.
Ecosystem Participants
Tokoin is passionate about the success of Micro, Small, and Medium Enterprises (MSMEs). Therefore, the creation of a unified ecosystem that houses all participants is a step in the right direction.
Here, startups have the opportunity to have unrestricted access to interested investors that are willing to fund their businesses. Also, the ecosystem houses supplier from different sectors of the economy. They’re there to ensure that MSMEs do not have to look farther to make necessary purchases after getting loans.
The Team
Tokoin Project Roadmap
Final Words
I am optimistic that the niche Tokoin chose is very significant. First, more startup continues to emerge, which gives rise to more business opportunities. Second, the upsurge of MSMEs also comes with an increase in financial needs.
Therefore, Tokoin’s distributed manner of facilitating credit request and obtaining is a decisive step to fix the challenges in the small-scale industry to position it for the better.
For more insight on this remarkable project, visit the links below
🌐website
💬Telegram
🐧Twitter
🗺Facebook
📄Medium
Instagram
Linkedin
Quora
Writer's information
Bitcointalk username: deodivine1
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