Unlocking the potential of private credit markets for SMEs through blockchain technology

Small medium enterprises (SMEs) are vital contributors to economic development, as they promote innovation and generate jobs. According to the EU: “They [SMEs] represent 99% of all businesses in the EU. In the past five years, they have created around 85% of new jobs and provided two-thirds of the total private sector employment in the EU.” Unfortunately, securing financing remains a major obstacle for many SMEs, particularly in regions where traditional lending options are scarce. Technologies such as blockchain and AI are poised to make a significant impact in overcoming these financial challenges. Blockchain, in particular, can simplify transactions, improve transparency and facilitate fractional ownership potentially transforming access to private credit markets, and this financial democratisation could provide SMEs with the necessary capital to grow and increase employment, thereby enhancing economic resilience.

The role of SMEs is vital to global economic stability in accounting …