Filling the SME credit gap: a systematic review of blockchain-based SME finance literature

Manuscript code article-28291
DOI 10.1108/jts-06-2023-0003
Keywords: SME MSME Credit gap Blockchain technology Supply chain finance Blockchain technology adoption DeFi ICOs STOs

Abstract

PurposeThe review examines the existing literature on blockchain-based small and medium enterprise (SME) finance and highlights its trend, themes, opportunities and challenges. Based on these factors, the authors create a framework for the existing literature on blockchain-based SME financing and lay down future research paths.Design/methodology/approachThe review follows a systematic approach. It includes 53 articles encompassing multiple dimensions of blockchain-based SME finance, including peer-to-peer lending platforms, supply chain finance (SCF), decentralized lending protocols and tokenization of assets. The review critically evaluates these approaches' theoretical underpinnings, empirical evidence and practical implementations.FindingsThe review demonstrates that blockchain-based SME finance holds significant promise in addressing the credit gap by leveraging blockchain technology's decentralized and transparent nature. Benefits identified include reduced information asymmetry, improved access to financing, enhanced credit assessment processes and increased financial inclusion. However, the literature acknowledges several challenges and limitations, such as regulatory uncertainties, scalability issues, operational complexities and potential security risks.Originality/valueThe article contributes to the growing knowledge of blockchain-based SME finance by synthesizing and evaluating the existing literature. It also provides a framework for the existing literature in the area and future research paths. The study offers insights for researchers, policymakers and practitioners seeking to understand the potential of blockchain technology in filling the SME credit gap and fostering economic development through improved access to finance for SMEs.

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Authors

Kumar, Deepak Department of Industrial and Management Engineering, Indian Institute of Technology Kanpur, Kanpur, India Phani, B.V. Department of Computer Science and Information Technology, La Trobe University, Melbourne, Australia Chilamkurti, Naveen Department of Industrial and Management Engineering, Indian Institute of Technology Kanpur, Kanpur, India Saurabh, Suman Department of Computer Science and Information Technology, La Trobe University, Melbourne, Australia Ratten, Vanessa Department of Industrial and Management Engineering, Indian Institute of Technology Kanpur, Kanpur, India

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Published December 12, 2023
Ngày nộp bài December 12, 2023
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DOI: 10.1108/jts-06-2023-0003

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