There is a globally recognized group of companies operating across the planet that create an astounding half of the world’s Gross Domestic Product.
This group is also responsible for a whopping two-thirds of the global workforce as cited by the World Economic Forum in 2015.
Being such a large player in global trade, what’s more astounding is that they are seen to be responsible for improving competition and innovation throughout multiple economic sectors.
How could something with such a massive global economic influence continue to invoke innovation and stoke competition?
Well, this large entity is made up of small independent enterprises.
The large group of companies described above are actually classified as Small-Medium sized Enterprises (SMEs) by international organizations like the United Nations and the World Trade Organization.
The parameters of an SME will vary depending on the company it’s being evaluated by. In the United Kingdom an SME “has a turnover of less than £25m, it has fewer than 250 employees, it has gross assets of less than £12.5m.”
In the United States, the criteria is “based on industry, ownership structure, revenue and number of employees (which in some circumstances may be as high as 1500, although the cap is typically 500).”
SMEs are responsible for a majority of employment across the globe, yet they face similar issues no matter where they’re located. By far the most common barrier to successful growth faced by SMEs is their ability to receive adequate funding, as cited by the International Labor Office in 2015.
Traxia has come up with way to solve this commonly faced issue, and they aren’t reinventing the wheel to do so.
In a nutshell, Traxia will apply blockchain technology to the financial process known as factoring.
Factoring is highly beneficial for SMEs, allowing them access to the capital they’d typically have to wait for the invoice to be filled with.
Since the financial crisis of 2008, many local banks have “lost their appetite for taking on higher-risk SME loans”.
With Traxia, the average lone investor now has access to unfilled SME invoices, allowing these innovative enterprises access to more capital, giving them the ability to grow and continue doing what they do best: employing people and contributing to the global GDP.
“Cash at that time is like oxygen. When you don’t need it, you don’t notice it. When you do need it, it’s the only thing you need.” -Warren Buffet
Traxia might have the solution that many businesses around the world are dying for. What would happen if more SMEs around the world were allowed some breathing room?
Disclaimer: As with all investments, you should do your own research. The information provided in this article is focused primarily on bringing the facts out of the white paper to supplement your due diligence. The quotations provided are from Traxia’s white paper unless the quotation is underlined. If the quotation is underlined, it will link to the source.
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Links:
Join the presale — https://www.traxia.co/token-sale-info
Bounty Info — https://bitcointalk.org/index.php?topic=3021679.0
Telegram — https://t.me/traxiafoundation
Whitepaper (PDF)-https://docs.wixstatic.com/ugd/baba69_30f719c55f344ab7ae44715a4d287811.pdf
