If ever asked to draw a line of distinction between small and large-scale enterprises, we may often land up talking just about their investment and funding size. Very few focus on the survival and growth scenario. As per the report of SBTA (Small Business Trends and Alliance), only 31% of the small start-ups survive for a decade or more, the rest fails to survive even for a year or two. As observed in the current regulatory scenario there exist several magnitudes to this apart from financing. These are slow recruitment of ancillary services, poor payment processes, lack of self-reliant data structure, and unambiguous security and storage protocols. So, now what's the solution to head towards a better growth scenario? This certainly has to be a proficient application of blockchain technology in the operational structure. The wings of blockchain can be attached to any form of business be it online or offline. In today's competitive world blockchain has emerged as a wonderful tool to let business fly higher and longer.
How Blockchain is good for a small company?
The blockchain holds the ability to let businesses attain remote, autonomous consensus between the users and the business. This is where the major urge of the small companies lie that is in serving the customers with the greatest ease. Beyond this let's understand what small companies can pick from the blockchain's pocket of goodness.
A new form of Payment: The adoption of blockchain technology facilitates the acceptance of cryptocurrency as the payment method. Here, the businesses have to only spend on developing a merchant gateway, digital wallet, and other required services. This adoption of the latest technology indicates that the company is open to expansion and results in healthy goodwill creation. Blockchain-based payment reduces the transaction cost and is permanent and irreversible.
Ease for capital raising: The use of blockchain technology serves as an alternative to raise capital. The business owners can raise funds through Initial Token Offerings (ITO). These crypto tokens are equivalent to regular equity and other regular offerings.
Improved Privacy and Security: The concept of blockchain creates a trust culture in the industry. This technology provides a high secretive command for each transaction and dealing through the platform. The element such as private keys, the protection level of cryptography avoids exposure of personal and financial information to unauthorized users.
Progressive cloud storage. The blockchain provides the smart storage application for the users in the safest way. This storage can be accessed at a reasonable cost without any compromise with data security. The supply chain management in the e-commerce companies is benefitted largely by the blockchain technology in place.
Leveraging smart contracts: Being based on smart contract blockchain ledger and records cannot be easily changed and manipulated. As a result, the authenticity of the business remains intact. It offers a great level of protection which otherwise requires huge cost involvement.
The diversified use of blockchain technology is potent to bring a healthy turn to the business life cycle. As a result, the overall survival rate and health of the companies improve significantly.
Blockchain automates several ancillary services that ease out the execution of several operational activities. With the right technology and practice in hand, the small companies find great support and hope in this smart contract-based technology. So.let your business make the best deal with the blockchain technology in action.