The aspiration and desire of the people and government of many nations of the world are to see active development come to reality in their countries. However, this goal cannot be achieved without putting all the necessary ingredients or factors in place. We live in a world where we cannot do without buying and selling. This seems to be the most common activities done by man. One produces and another buy. Someone supplies and another demand. All these need to be brought into equilibrium, else development might seem like a mirage. This does not end here. Many countries that have today experienced or are known to be economically developed, started by being underdeveloped, to developing countries, before emerging at the very pinnacle of development. One of the secrets to this is patronizing and encouraging homemade goods and services. They never stopped at that, rather they did their parts in ensuring that young minds, young entrepreneurs, small businesses, that are known as Micro, Small and Medium Scale Enterprises (MSMEs), are encouraged and today some of them are the big ones we see, having big names. This is just like a popular saying that, "Rome was not built in a day" and that "A drop of water makes a mighty ocean." There is always a place of little beginning, which should not be despised. These MSMEs are those little beginnings, which though may be small today, but their impacts on a country's GDP on a positive note is inevitable. Therefore, a team has come up with a great idea, that is called by the name Tokoin, which is now actively working and making sure that all hands are on deck, to give full support to these enterprises with little beginnings.
What is Tokoin?
Tokoin is a platform established to integrate blockchain technology in establishing a reputation and accelerate the growth of Micro, Small and Medium Scale Enterprises (MSMEs) by enabling the collection and exchange of trustworthy data and information, to meet their need for financial and business services without complicating intermediaries. This is not just a project that is restricted to an area, but a globally impacting project, most especially to the world economy. Therefore, Tokoin will be helping to foster the economy of MSMEs, which invariably will contribute to the development of the economy of the country and the world in general when adopted.
What are MSMEs?
The full meaning of MSMEs as stated earlier is Miro, Small and Medium Enterprises, which include merchants that are involved in such little categories of businesses. However, the definition of MSMEs varies from region to region and from country to country. Which means there is no universally accepted definition for it. They are the most numerous businesses found in so many countries, but they have a lot of challenges encountered and much more when compared to businesses, which is why their growth is mostly hindered and there are lots of them that have failed, mostly because of inability to meet up with financial needs. Most of the times, businesses of these nature are set up by individuals, both young and old. A typical offline retail marketplace in underdeveloped, developing and undeveloped countries comprises mostly of businesses of this nature. For example, abattoir, fashion design, local fish processing factory and the likes.
Problems Confronting MSMEs
Every economy of the world has its inclusion of problems being encountered by MSMEs, although, this varies with respect to different countries and zones. Which is why their ratings vary and it is evident in their different levels of economic growth and development. Identifying these problems is of the utmost importance and providing solutions to them is more important. Some of the problems encountered are as follows.
Unavailability of Data: Most of the times, those who establish MSMEs do not understand the importance of data, therefore, making a good and accurate record of data might not make any meaning to them. Those who record day to day activities, might not know how to process them in such a way that it can be used to leverage their establishment. However, bigger establishments, with bigger data, can employ the service of data analysts, who would process the data for whatever benefit it will be for the business.
Lack of Access to Adequate Funding: For a business to succeed, there should be adequate funding, else, there might be a total closure of the business. One of the ways in which businesses are adequately funded, most especially for startups is through bank loans or assistance from financial service providers. MSMEs mostly do not have access to adequate funding, probably because financial service providers or banks cannot entrust them with their money, that is, there is a lack of trust. This happens mainly because MSMEs cannot meet up with the requirements for such funding, such as lack of collateral, lack of legal document and lack of long term credit history. Therefore, the majority of the MSMEs resolve into personal funding or borrowings from relatives, but when this is not available, it leads to the foldup of those MSMEs. However, this has led to the discrepancy or wide margin between bigger businesses and MSMEs, which is why they may not be able to strive in a competitive market.
Inability to Scale Up In an Emerging Market: The discrepancy between MSMEs and big businesses in the market is too wide, mainly because of the financial inadequacy, has limited MSMEs from being able to grow, produce effectively and measure up to the standards or level at which big establishments are operating. This is a different ball game from the adage that says, "If you cannot beat them, join them." In this case, MSMEs cannot join them, because they cannot measure up to their standard financially, let alone beat them. Therefore, this makes them be relegated among others. Their production cost is higher. They purchase raw materials from suppliers at a higher cost, because they cannot buy in large quantity. There is no discount on what is purchased. There is no adequate marketing of their products. MSMEs in most countries are more labour intensive, rather than being capital intensive. Consumers do not trust their products like they trust those produced by the big players in the industry. So, what are we saying- there is no way MSMEs can scale up this way.
Lack of Reputation: Reputation in the lives of humans is very important. A man with no reputation is like a food that has lost its taste and has gone sour, no one will want to eat it. The resultant effect of all that has been listed above is that it leads to loss of reputation for the MSMEs. If this is lacking, how then will they grow? All the players involved cannot trust them. Above all, those who use their products or their end users cannot even trust them. What I am insinuating invariably is that reputation must be revived.
Solutions to the Inadequacy Confronting MSMEs
If there is a solution to a problem, particular a problem that is as huge as what is being encountered by MSMEs, then it calls for rejoicing and celebration, because its a form of solace, comfort, fulfilment and it will directly or indirectly save lives. Tokoin has discovered a rare opportunity in providing the solution to these lingering problems confronting MSMEs, through the application of blockchain technology in form of the decentralized application (dApp), which is a platform that helps in establishing the long lost reputation and that will accelerate the growth of MSMEs among the big businesses. This will not only impact the MSMEs but will also benefit all the respective players involved, because there will be an expansion in the network of their services. This solution will, therefore, help to foster cordial relationship between B2C and B2C (that is, business to consumer and business to business relationship). Some of the solutions provided are as follows:
Establishment of Business profiles: Since one of the problems confronting MSMEs as stated earlier is lack of reputation, Tokoin will, therefore, help in establishing this reputation, by creating an enabling environment, that will help to build trust from banks, suppliers, service providers and consumers or customers, as the case may be. This will be done through the collection of non-financial data from MSMEs, which is very much similar to KYC. In this case, the driver's license will be used as a legal tender or document to back up the data. The data collected will be developed into a Digital Business ID, which gives a Digital Identity to the users. Also, the business data from daily business activities of the MSMEs and records of behaviour will be collected and processed into Digital Ledger, to fortify the business profile of each business, which will, in turn, give more credence to their reputations and create credibility for Tokoin users. This will help the MSMEs to level up with large corporations and get access to services which they were previously deprived of. Banks, service providers and consumers will have access to the profile of MSMEs in order to be able to make the right decision on whom to give loan or provide the service. There is a clear indication that it will be of great benefit to other players because there is an assurance that loans or services are being provided to the right person based on well-established reputation.
Provision of Access to Funding: The technologically driven platform provided by Tokoin, enables the collection of data from MSMEs, who are the users of the platform and the onward processing of those data, which leverages those data by putting a value on them. Owing to this and coupled with what was explained earlier, it provides the MSMEs with the credibility needed as one of the major criteria needed to obtain loans and financial assistance from banks and other financial institutions. This also provides a level playing ground for MSMEs and large corporations. The shortage of fund that was earlier experienced will now be eliminated, MSMEs will be enabled to operate at full capacity and be able to grow at full fledge.
Scaling Up of MSMEs
The provision of established reputation and access to the fund, provide enormous opportunities for MSMEs to easily scale up in the emerging markets. A well-established reputation and credibility scoring will bring about a cordial relationship and perfect connection between MSMEs and banks, service providers, marketers and consumers. This will also enhance and increase their production capacity, with a reduced cost of production and increased business network.
Partners and Players on Tokoin Platform
This is not like other projects, who promise heaven on earth and at the end are unable to deliver or get to the middle of a river without a way out. Tokoin will not only provide a platform that collects data and transforms the data for public view but will also provide an enabling environment that partners with big players in the industry, namely, banks, service providers (such as those who are into procurement, marketing and the likes), financial institutions and consumers. Above all, it is also in partnership with the government where it is operational. The beauty of this project is that it is global, therefore, it will partner with the government of the country it will be operating, because the government and economy of such country will also benefit immensely from the operations of tokoin.
How does this Partnership come into Play?
MSMEs, who are the first merchants on the Tokoin platform, will register on the Tokoin's app, otherwise known as Tokoin dApp, by providing their data and for every data provided, Toko coin, which is the indigenous coin on the platform, is earned as an incentive. Therefore, the coin earned is used for credibility scoring. Financial intermediaries, such as banks and other financial institutions, service providers and suppliers, all stake Toko coin on the Tokoin platform, in order to have access to the data of MSMEs for business partnership. At least, this will give assurance to other users, that they are working for, by giving loans and providing services to the right set of people, most especially those who deserve it and can be trusted. Other partners do not provide services to the MSMEs but might need the data for other purposes. They are known as the indirect participants, wh also stake Toko coin on the Tokoin platform, to have access to the data of the users.
There are partners who also benefit from this platform, therefore, I will not fail to mention advertisers, who can advertise their products on Tokoin platform for the advertisement of their products, goods and services to users on the platform. These set of merchants will also stake Toko coin on the platform. This is to tell you how vast Toko coin will be used and how much the platform will benefit a lot of people directly or indirectly.
How will Tokoin change the Global Economy
There is no country in the world where there are no MSMEs, except that in some places, they might not be duly recognised or registered. They contribute directly or indirectly to the GDP of such country. Not-taking cognisance of them and not creating an enabling environment for their growth is like wasting opportunities that could bring about economic development. Therefore, Tokoin will not only operate in a localized region but will be operating globally with its brilliant initiative and idea, to foster the growth of MSMEs and provide them with services needed to actualize this vision. Therefore, if every country's economy in the world is impacted, the world, in general, will also be impacted. Through this, the global financial crises that are being experienced can receive a lasting solution. There are lots of underdeveloped and developing countries in the world, if MSMEs are handled with the utmost importance in these countries, most developing countries will be able to measure up with developed countries around the globe.
Why is Tokoin branded the Number One Indonesian Blockchain Project
I have searched through the internet and I made a lot of enquiries and I discovered that not many projects in Indonesia are focused on MSMEs market as Tokoin does and looking at it, this project will be impacting the E-commerce industry, particularly the economy of Indonesia. This should at least give an inkling that it is not far from being the first.
It does not stop at that, to understand and know how powerful and great Tokoin can be, when compared with other projects, Tokoin is partnering with trusted companies that have vast experience in the industry and all that has to do with E-commerce and commerce in general and also those who have strong relationship with Tokoin users, as well as the potential users.
Also, Indonesian MSMEs have little knowledge of the use of digital ledger in fostering the development of MSMEs. However, it is now becoming evident to them, how impactful and important business ledger can be. Therefore, the digital ledger is one of the powerful products that Tokoin will be used to actualize the set goals and visions for MSMEs.
How does Tokoin educate MSMEs with Blockchain Technology
At the time of writing this article, through the collaboration with the big and important partners, Tokoin has already onboarded good numbers of the user, which are now being educated and orientated on what this service entails, particular with its inclination on blockchain technology. This, therefore, gives an assurance of its adoption.
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No doubt, MSMEs are very important segments in the development of the economy of a country and the world at large. If provided with an enabling environment that will establish its reputation and accelerate its growth, they will be able to compete with the global marketplace. Therefore, a project like Tokoin is all we need to speedily foster this growth. From all indications, it is certain that Tokoin will be adopted, not just in Indonesia, but also globally, because it will be highly impactful.
This project has good resources from which you can get more information. You can make good use of the Website and Whitepaper. To communicate with the team and to relate with the vast community of Tokoin, you can visit their different social media handles, such as Telegram, Twitter, Facebook, Medium, Instagram, LinkedIn and Quora.
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