When it comes to local content creation, development of entrepreneurship, grassroots growth and development, increased trade, increased export earnings & value addition etc, the MSME stands out a major & effective facilitator for actualizing all of the above mentioned in any economy. The development of MSME is no doubt a veritable means of accelerating & achieving a larger socio-economic goal and alleviation of poverty, As at today there are so many economies in the world with different forms of MSME but with very similar aim & one of such economy is the Indonesian economy, with tons of untapped potentials, it has about 59.2 million MSMEs just for only the telecommunication sector. Within the past few years their been an unprecedented per-annum growth MSME within the Indonesian economic sphere, with a better modalities for eased business process this growth have continued despite the obvious challenges of lack of credit facility & government support . In 2015 it had a maximum growth rate of 27.4% with only about 12.8% of businesses finance by credit facilities from banks. But a more cursory look into the MSME shows that it is still been limited by quite a number of external factors. Most small scale operations are susceptible to acute deterioration in a highly competitive business environment, others are strangulated by the lack of government support which will in turn lead to high cost of borrowing etc. Other pressing challenges to MSMEs most especially those in Indonesia are the challenges of unrealistic collateral requirements, alighnments with international requirements standards and investment/lending complications.
But a more cursory look into the MSME shows that it is still been limited by quite a number of external factors. Most small scale operations are susceptible to acute deterioration in a highly competitive business environment, others are strangulated by the lack of government support which will in turn lead to high cost of borrowing etc. Other pressing challenges to MSMEs most especially those in Indonesia are the challenges of unrealistic collateral requirements, alighnments with international requirements standards and investment/lending complications.
The Tokoin project is a blockchain enabled project with tested and trusted solutions for bridgeing the inefficiencies beguiling the maximization potential of MSME,s within the Indonesian economic sphere. Tokoin will not just have a tremendous positive effect on most Indonesian MSMEs but it will go along way to decrease unemployment rate, develop entrepreneurship, rejuvenate government interest/support, provide a loci-standi for banks & financial institutions to provide credit facilities without hassles.
EFFECTS OF TOKOIN ON INDONESIAN ECONOMY.
(1) Harnessing, organizing & compiling of MSME data (information): these will go a long way to give MSMEs within the Indonesian economy, the opportunity to build their business reputation which will be used as a basis/criterion to easily secure loan from financial institutions, Tokoin has a very transparent process for creating, accessing & monetizing reputations. All this will columinate into a win-win for both MSMEs & financial institutions and also a positive growth for the Indonesian economy.
(2) Accessibility to funding for MSMEs:
Tokoin understands that adequately funding MSMEs will indirectly spur the Indonesian economic growth and so it has uses blockchain enabled digital ledger to extract MSMEs transaction data that will then be used or presented as requirements for securing funds from financial institutions. In other words tokoin gives credibility to MSMEs within the Indonesian economy making it easy for them enjoy & access loans seamlessly & timely.
(3) Eliminates fraudulent MSME data by harnessing & storing MSME data so as to build accurate business profiles & then satisfy lending requirements through credibility scoring.
CONCLUSION
As at now the impact of MSMEs through partnership with the Indonesian economy shows a positive outlook but the incorporation of the Tokoin only makes it better by creating avenues for more engagement of more MSMEs that will ultimately & eventually lead to better economic growth for Indonesians.
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