EMPOWERING SMEs THROUGH BLOCKCHAIN BASED JUNIOR STOCK EXCHANGE
EMPOWERING SMEs THROUGH BLOCKCHAIN BASED JUNIOR STOCK EXCHANGE

Summary/Abstract: The problem of financing of small and medium-sized enterprises (SMEs) has been a concern especially for developing countries over the last couple of decades. In recent years, stock exchanges in developing economies and emerging market already established dedicated market segments intended specifically for SMEs. Creation of these so-called junior markets dedicated to SMEs are more and more seen as an alternative to prevailed bank financing. Equity funding in developing countries experienced different developments, but some problems remain unsolved. This would improve the key problem of developing countries' stock exchanges, which is their liquidity. Blockchain, as a decentralized and distributed ledger technology which enables high transparency, data security and integrity, have great potential in the financial world. Because it cannot be forged or tampered with this technology can be solution for junior stock exchange since it is secure, efficient and a low-cost solution for the registration of stocks and shares of SMEs. Blockchain technology even simplifies the transaction and transfer of equities by enabling peer to peer transactions between SMEs or entrepreneurs and investors, therefore. Because of the role these SMEs can play in job creation and diversifying economies, improving access to finance can become a long-term policy goal in developing as well as developed countries. This paper will propose model of junior stock exchange based on blockchain technology. SMEs act as catalysts in the economic development and growth of the developing and developed countries.

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