Case Study of Block Chain & Supply Chain Finance: Open the Rich Road for Small and Micro Enterprises-A Based on "We Chain" Platform
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Songqin Ye, Yijie Liao and Yinhui Luo
Due to internal constraints such as weak profitability and small volume, financing problems has been restricting the growth of small and micro enterprises. However, neither the traditional supply chain finance platform can establish the trust mechanism between SMEs and fund providers, nor can they provide financial products suitable for the business characteristics of upstream and downstream enterprises according to their business characteristics, which further increases the risk of performance. This paper takes Tencent’s "We Chain" as the case study object, and finds that the application of block chain technology enables the upstream and downstream enterprises in the supply chain to form an alliance network and thus accelerating the information connectivity between enterprises. In addition, the non-tampering of the block chain also provides credit endorsement for SMEs which greatly reduces the risk of supply chain finance, further saves social resources and improves the utilization efficiency of resources.
Block chain, Supply chain finance, Financing problems, We Chain