Financing Small and Medium Enterprises with Blockchain Technology: Connecting SMEs and Investors in Europe
Pokhrel, Sakshi (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024121034158
https://urn.fi/URN:NBN:fi:amk-2024121034158
Tiivistelmä
This research explored the use of blockchain technology to address the scalability and transparency chal- lenges faced by Small and Medium Enterprises (SMEs). Specifically, it focused on how blockchain could en- hance SMEs' ability to attract investors across Europe.
SMEs often struggle to expand their operations beyond limited regions due to a lack of investor interest, which stems from concerns over inadequate transparency in financial reporting and liquidity. Addressing these challenges is crucial for improving investor confidence and enabling the growth of SMEs.
The study conducted a systematic review of existing literature, utilising secondary data collection to assess the potential of blockchain technology in improving SME financing. A bibliographic study was performed to ensure a comprehensive understanding of the existing research landscape. Thematic analysis was then em- ployed to identify key themes and insights from the literature.
The findings suggest that blockchain technology can significantly improve the transparency of SMEs' finan- cial processes through the use of distributed ledgers. This enhanced visibility would allow investors to ac- cess real-time financial data, thereby fostering greater trust and encouraging inv investment. Additionally, the use of tokenisation and smart contracts was identified as a means to streamline asset sharing and fun- ding processes, further supporting SME growth.
SMEs often struggle to expand their operations beyond limited regions due to a lack of investor interest, which stems from concerns over inadequate transparency in financial reporting and liquidity. Addressing these challenges is crucial for improving investor confidence and enabling the growth of SMEs.
The study conducted a systematic review of existing literature, utilising secondary data collection to assess the potential of blockchain technology in improving SME financing. A bibliographic study was performed to ensure a comprehensive understanding of the existing research landscape. Thematic analysis was then em- ployed to identify key themes and insights from the literature.
The findings suggest that blockchain technology can significantly improve the transparency of SMEs' finan- cial processes through the use of distributed ledgers. This enhanced visibility would allow investors to ac- cess real-time financial data, thereby fostering greater trust and encouraging inv investment. Additionally, the use of tokenisation and smart contracts was identified as a means to streamline asset sharing and fun- ding processes, further supporting SME growth.