Yes. Small- and medium-sized enterprises (SMEs) are almost 90% dependent on banking funding, which can lead to financial difficulties during financial turmoils. Blockchain technology is facilitating, speeding up and increasing the efficiency of these types of new-generation alternatives, such as DeFi tokens, flash loans, direct peer-to-peer lending and borrowing, low-cost capital via B2B (business-to-business), crowdfunding, and other public funding schemes such as Initial Coin Offerings (ICOs). Blockchain technology also has the potential to enable low-cost credit scores to get loans, and ICOs are a new type of crowdsourcing instrument that provides financing to projects by selling access rights to the products to be produced. Blockchain technology has many advantages, such as increased transparency, formality and traceability, decreased informal transactions, social transfers and welfare transfers, economic activity being recorded and formalized, transaction costs and risks being decreased, making transactions safer and secure, and increased sustainability.
However, there are also disadvantages and weaknesses, such as too many fund transfers toward digital wallets, Tougher identity verification mechanisms, limit controls on the highest amount users can hold, and complex and nontransparent credit markets. MSMEs can build a stronger support network, gain access to new opportunities, and navigate challenges more effectively.