In an exclusive interview with Cointelegraph, Nick Williamson, CEO of Qadre, a UK-based fintech company, He argued that blockchain technology can give small and medium-sized businesses or SMEs access to capital.
“With interest rates close to zero for most of a decade and with no end in sight, capital has been desperately looking for yields, but has always overlooked one of the largest economic sectors, small and medium-sized businesses.”, he claimed.
“One reason is that investing $ 10 billion in a diverse portfolio of corner bakeries is really difficult! Nowadays it is much easier for a major investor to trust the reports and government standards that large public companies are in, ”added Williamson.
SMEs as a new frontier for inactive capital
Williamson argued that Blockchain can be implemented to provide SMEs with access to the same financial instruments that are currently only available to large companies.
“The first step in this process is to provide security for capitalization charts and corporate stocks, and to align investor interest with small business interest,” he said.
“While SMEs have been the largest driver of GDP growth and job creation in the past, there has been a long-term shift to larger companies in recent decades, due in part to the ability of large companies to access capital markets efficiently. “
“The other part of the equation is to provide investors with security, to give them access to an industry from which they were previously excluded, and to realign wider market incentives to support the whole economy, not just the part that currently driving returns “Williamson added.
Blockchain and capital management
A recent report published by Qadre argued that blockchain technology can also be implemented to enable UK fintech companies to save $ 3.17 billion in capital management efficiency each year.
The report interviewed the founders of 59 UK fintech companies and found that a third lost funding due to inefficient capital management.