Micro, Small & Medium Enterprises MSMEs became the last hope of many at the time where there was global melt down in 2008. At this time, many big businesses folded down and what many could do is to focus on building small businesses but despite the big potential of MSMEs, the sad reality is that the industry is insufficient of funds that could further accelerate its growth.
Therefore, what should have been a booming industry with enormous potential to create many Middle class earners which is the engine of the economy is bewildered with many challenges that is slowing down its growth. These challenges inhibiting small scales businesses are the reason behind the creation of Tokoin platform which is a blockchain ecosystem committed to seeing the healthy growth of MSMEs in a decentralized infrastructure.
Scaling Up The Challenges
It is very important for us to have some basic facts about the present issues hindering the growth of small scales industry. The main one is the issue of trust which hinder MSMEs owners from getting the much needed loans from financial institutions to further expand their businesses. In as much as we know that in many part of the world, it is not always advisable to start business with loan but loan is very important if one wants to expand his business and this is what many MSMEs find very difficult to access due not having valid identity or collateral.
We must not also overlook the huge interest that comes with loans especially in commercial banks out there. Even if you are not a startup, it is still very hard to operate your business with loans of huge interest because the interest rest might not be appealing to you.
Tokoin Blockchain-powered Innovative Solutions
As I have referenced above, Tokoin is blockchain-based platform which is working to increase the chances of Micro, Small & Medium Enterprises. The platform will be able to achieve this feat through some features that I further explained below:
Digital Business Identity
It is something worth referencing that top of the challenges hindering small scales businesses to access loans for their business is because of their bankable reputation. As an emerging enterprise trying to have influence in the market without any successful milestone that associates will your business and also with little experience when it comes to risk management, it is very difficult for financial institutions to loan your business because they also are taking risk and it is normal for them to weigh up the possible outcomes.
Tokoin has successfully solved this with their solution which makes it a must for all MSMEs owners on the platform to register for a digital business identity which will contain all the activities of their businesses. With this, the profile of their enterprise will be easily built and this will further increase the possibility of getting loans for expansion.
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 crazy to seek loan for a business when the credit rating of your company is very low and poor or does not meet the standard requirements of the bank you want to borrow from. But the good news is that Tokoin platform will help MSMEs to have high credit scores because since they are using blockchain infrastructure, every transaction on it will be easily accessible and verifiable by anyone and this will pave way to verifying the activities of the company that will later be used in the future to score them when they are in need of loans.
Tokoin Roadmap
Tokoin Team
Conclusion
Am happy to say that the business focus of Tokoin is a very good one. With their approach, more MSMEs will continue to spring up which gives rise to thriving businesses thereby creating jobs. Also, the thriving of MSMEs is good for the nation economy because it will create many Middle income sources. Therefore, my conclusion is that Tokoin approach toward facilitating loan request and obtaining it will fill the issues facing MSMEs and position them for evenly viral growth.
Useful Links
https://www.tokoin.io/
https://www.tokoin.io/whitepaper/Whitepaper.pdf?id=05f5c9d62d22ae24ea82
http://t.me/tokoinglobal
https://twitter.com/TokoinOfficial
https://www.facebook.com/TokoinOfficial
https://medium.com/@tokoin
https://www.instagram.com/tokoinofficial
https://www.linkedin.com/company/tokoinofficial/
https://www.quora.com/profile/Tokoin-Official-1
Article written by Torchlight
https://bitcointalk.org/index.php?action=profile;u=2587983