How Security Token Offerings can benefit Small and Medium Scale Enterprises in emerging Economies

Cryptocurrency and blockchain technology has been on a sweeping wave across major industries and sectors of the world for the past few years, creating an atmosphere of increased efficiency, reach, and, more importantly, freedom that had been severely lacking across industries globally.

As detailed by PwC, blockchain technology has the potential to boost the global economy by $1.76 trillion come 2030. This is a serious projection for an industry that, only a decade ago, was not known to many.

As interesting as these projections are, there are still more use cases of blockchain that have not been explored. One of such is its strategic importance as an economic tool for startups and small and medium scale enterprises, especially in emerging markets.

This article explores how SMEs could use blockchain technology to leverage economies of scale and further grow through capital investments in no time.

SMEs — The Backbone of emerging Economies

Reports from the World Bank show that SMEs are the largest employer of labour globally as they create the most job opportunities. They account for at least 90% of businesses and 50% of global employment, and formal, and legally registered SMEs account for up to 40% of GDP in emerging economies.

These statistics show the key role that this often-overlooked sector plays in the lives of economies globally. To this end, it is critical that SMEs receive increased attention. More importantly, they scale and obtain the required support and resources that they can utilize to expand, grow, and further contribute to national economies.

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Global System of Funding

There is a clear disparity between funding in developed economies and what is obtainable in emerging economies. Typically, startups in advanced countries and the western world could typically raise large sums, as investors are willing to put a chunk of their cash in the potentials of such business.

This is just the opposite in most emerging economies. Most startups will find it hard getting on their feet in emerging economies, not for the lack of innovation, but because they increasingly find it hard to raise capital and develop key business areas.

Even those who manage to get started usually struggle and play catch-up for years, while some ultimately die along the line. Only a handful of SMEs usually makes it across the startup line and into grown businesses.

Leveraging Crypto’s Multi-billion dollar Investment Hub

Cryptocurrency and blockchain create a sustainable and effective route for small-scale businesses to grow by raising needed capital in no time. Through Security Token Exchanges (STO), medium-scale businesses can effectively fend off all barriers to growth.

First, STO provides an avenue for SMEs to raise a substantial amount in investment capital. The privilege of IPOs primarily benefit large and established industry players, but the blockchain and STO provides a level playing ground for all potentially viable businesses.

The level playing field is only the beginning. On the blockchain, startups can raise a significant amount through asset tokenization. Asset tokenization has been increasing as a source of alternative investment and portfolio diversification for investors over the past few years, and the trend shows little sign of slowing.

STOs will open the ground for SMEs to sell digital securities to a global community of investors, clearly removing the barriers of geography and staunch national regulatory policies. Based on the nature of security tokens, they have been designed as a quick-to-market mechanism that operates in a manner that is compliant with national and regional laws.

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Facilitating Dividend Payment using Blockchain

Although returns on investment via IPO stocks are done through dividend disbursement, STO has a similar arrangement called yields. SMEs that have raised money via STO can pay their investors’ yields in native tokens, effectively maintaining the blockchain-based investment-reward cycle.

Through dedicated platforms like Tokenizer, emerging businesses will efficiently launch their token offering and manage the entire STO process from tokenization to sale and yield disbursement without any fuss.

Simplicity, Efficiency, and Speed: Tokenizer is made for SMEs

Tokenizer is a digital securities issuance platform that is dedicated to helping SMEs across the world to achieve scalability when required. SMEs can leverage Tokenizer to issue digital securities through asset tokenization, raise needed funds through Initial Sale Market, and further scale on both the Tokenizer primary exchange and other integrated partner secondary exchanges.

The Tokenizer platform is powered by BlockX and has a simple interface that all potential SMEs can effectively manage. The platform is fast and secured and also provides startups with an investor community that is also eager to invest in verified and high-potential projects.

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Participate in the Blockx End Sale Round

Following the successful completion of our Initial Exchange Offering seed sale first round, we are pleased to inform you that the round is Sold Out. However, we will be commencing a private sale round on our website very soon. We invite interested participants to check out our website to get started. The end sale token price commences @0.15 USD per BCX token + a 20% bonus. Tokens can be purchased using $BTC, $ETH, and $USDT.

To join the end sale today! Follow this link to get started!