SME Empowerment & Global Competition

Overview

Small and medium enterprises (SMEs) form the backbone of the global economy, yet face systemic barriers when competing with multinational corporations (MNCs). This research synthesis examines the documented challenges SMEs face and demonstrates how blockchain technology—specifically the Skyocean platform—can address these structural disadvantages.

The SME Challenge

Scale and Economic Importance

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“SMEs are the backbone of any industry, usually accounting for 90% of total business and 50% of employment in most economies worldwide (OECD, 2019).”

Relevance to Skyocean: Despite representing 90% of businesses globally, SMEs lack proportional access to trade finance and global markets. Skyocean’s democratization model directly addresses this imbalance by providing blockchain-based access to commodity trading previously reserved for large institutions.

Capital Access Barriers

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“World Bank (2015) identified lack of access to finance as a major hurdle in the growth of more than 50% of SMEs. Lack of investment due to scarcity of savings is a major problem in third world countries.”

Relevance to Skyocean: The $2.5-2.6 trillion trade finance gap disproportionately affects SMEs. Skyocean’s token-based investment model and profit-sharing mechanism allow SMEs to access working capital through crowdsourced investment pools rather than traditional bank loans with prohibitive requirements.

MNC Dominance Through Economies of Scale

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“These MNCs along with their huge resources, technological expertise and already achieved economies play a dominating role and evacuate the markets of local SMEs by their cost leadership strategy resulting in destruction of local industrial base and consequently the economic growth of the country.”

Relevance to Skyocean: MNCs achieve cost leadership through volume and scale that individual SMEs cannot match. By pooling investments and creating shared infrastructure (DKG for documentation, smart contracts for escrow, collective bargaining power), Skyocean enables SMEs to access some benefits of scale without requiring massive individual capital.

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“Cost inefficiency is considered as the major threat restricting a company from prospering into global marketplace. Among the global competitive strategies, most common is the cost leadership (Douglas & Craig, 1995). This cost leadership can also easily be leveraged after achieving economies of scale due to world-wide volume of market (Salvatore, 1993).”

Relevance to Skyocean: Skyocean’s platform reduces transaction costs through automation (smart contracts replace intermediaries), transparency (DKG reduces verification costs), and shared infrastructure (distributed costs across multiple SME users).

Anti-Competitive Practices

Acquisitions and Mergers

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“The strategies include formation of monopolies, cartels, and unfair trade practices to get dominant market position.”

Relevance to Skyocean: Blockchain-based platforms like Skyocean are inherently more resistant to acquisition-based consolidation. The decentralized governance model (with DKG as a shared, permissionless data layer) means no single entity can “acquire” the network and eliminate competition.

Technology Gap

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“Competition is thus made tougher for technologically deprived local companies to deal with advanced hi-tech products of MNCs.”

Relevance to Skyocean: By providing a ready-made blockchain infrastructure (DKG integration, smart contracts, mobile-first UX via Celo/MiniPay), Skyocean lowers the technology barrier. SMEs don’t need in-house blockchain expertise—they access institutional-grade technology through our platform.

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“Unavailability of advance technology, sustainable means of production and raw material due to their high cost is a weakness of SMEs that defines the competitive advantage of MNCs and eventually restricts their existence.”

Relevance to Skyocean: Skyocean’s technology stack (OriginTrail DKG, Polygon/Celo blockchain, ERC-4337 smart accounts) is provided as a service. SMEs gain access to cutting-edge supply chain and finance technology without capital expenditure or R&D investment.

Control Over Natural Resources and Government Influence

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“The strategies include… influence over governments [to get] dominant market position.”

Relevance to Skyocean: Transparent, blockchain-based trade records and smart contract execution reduce opportunities for preferential treatment or opaque dealings. All participants operate under the same protocol rules, regardless of size or political connections.

Blockchain as Supply Chain Equalizer

Traceability and Transparency

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain can improve traceability and transparency in global supply chains, which aligns with SKYT’s goal of democratizing global trade.”

Relevance to Skyocean: DKG integration provides end-to-end traceability of commodity shipments, documents, and certifications. This transparency reduces information asymmetry that typically favors large, established players with long-standing relationships.

Smart Contracts for Credible Transactions

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain consists of applications that can be applied in different settings. For example, as written rules stored in the blockchain, smart contracts enable organizations to operate credible transactions without interference from third parties (Saberi et al., 2019).”

Relevance to Skyocean: Skyocean’s escrow contracts (Polygon and Celo) enable SMEs to transact with confidence even when dealing with unknown counterparties. Milestone-based releases, DKG-attested documentation, and automated settlement replace the trust-based systems that disadvantage newcomers.

Dispute Resolution and Cargo Integrity

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain can help resolve disputes more efficiently through smart contracts and by providing an immutable record of transactions.”

Relevance to Skyocean: Immutable KA (Knowledge Asset) records in DKG provide tamper-proof evidence for dispute resolution. SMEs can prove compliance, delivery, and payment terms without relying on legal resources that favor larger corporations.

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain enhances cargo integrity and security by creating a secure chain-of-custody and reducing the risk of fraud/tampering.”

Relevance to Skyocean: Each milestone (BoL issuance, inspection, customs clearance, delivery) is attested in DKG by verified parties (carriers, inspectors, customs). This reduces fraud risk that disproportionately affects SMEs without established reputations.

Supply Chain Digitization

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain facilitates supply chain digitization by automating document flows and reducing bureaucracy.”

Relevance to Skyocean: Traditional trade finance requires extensive paperwork (letters of credit, bills of lading, inspection certificates) that SMEs may lack capacity to manage. Skyocean digitizes and automates these flows, with DKG storing proofs and smart contracts enforcing conditions.

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“By adopting this technology in the supply chain process, organizations will be able to alter the whole process from purchasing the raw materials to supplying the product to the final users, considering that every step of the process can be done quickly with greater security (Dutta et al., 2020; Queiroz et al., 2019).”

Relevance to Skyocean: Skyocean’s end-to-end integration (ERP → Edge Node → DKG → Blockchain) covers the full lifecycle: PO creation → financing → shipment → delivery → payment. SMEs gain the same process efficiency as large trading houses.

Compliance Enhancement

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“Blockchain improves compliance by providing an immutable record that forces organizations to follow laws/regulations.”

Relevance to Skyocean: Automated compliance via KYC/KYB checks (DIDs/VCs), customs data integration, and MiCA-aligned token disclosures reduce compliance burden on SMEs. The platform handles regulatory requirements that would otherwise require dedicated staff.

SME Definitions and Target Market

Global SME Landscape

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi
Read full paper

Table 2 from the paper provides SME definitions across countries:

Country Employees Turnover/Investment

EU < 250 Turnover ≤ €50M or Balance Sheet ≤ €43M

USA < 500 Varies by industry

China < 1000 (industrial) Revenue < ¥400M

India Investment < ₹100M (manufacturing) -

Japan < 300 (manufacturing) Capital ≤ ¥300M

Relevance to Skyocean: Skyocean’s pilot programs (USA-EU-Ghana corridors) target SMEs in the 10-200 employee range with transaction sizes of $20K-$500K. This aligns with the global SME definition and ensures we’re addressing the documented market gap.

Country	Employees	Turnover/Investment
EU	< 250	Turnover ≤ €50M or Balance Sheet ≤ €43M
USA	< 500	Varies by industry
China	< 1000 (industrial)	Revenue < ¥400M
India	Investment < ₹100M (manufacturing)	-
Japan	< 300 (manufacturing)	Capital ≤ ¥300M

Positive Spillover Potential

Multinationals and Local Capabilities

SMEs in the Contemporary Era of Global Competition
Authors: Nida Masroor, Dr. Muhammad Asim
Institution: University of Karachi

“Many researchers have examined a number of spillover effects of multinationals on local firms. They also declared that the multinationals contribute positively only with the progress of local capabilities and competition.”

Relevance to Skyocean: Rather than excluding MNCs, Skyocean creates a level playing field where MNCs and SMEs can compete on merit. The platform’s transparency and shared infrastructure enhance local SME capabilities, potentially creating positive spillover effects when SMEs can compete effectively.

Real-World Pilot Examples

Industry Case Studies Cited

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities
Authors: Yanling Chang, Eleftherios Iakovou, Weidong Shi
Journal: International Journal of Production Research, August 2019
DOI: 10.1080/00207543.2019.1651946

“The paper discusses several pilot projects implementing blockchain for supply chain traceability, such as those by Maersk, IBM, Walmart, and companies in the food/pharmaceutical industries.”

Relevance to Skyocean: These pilot projects validate blockchain’s technical feasibility for supply chain use cases. Skyocean extends this model to SMEs specifically, combining supply chain traceability (DKG) with trade finance (escrow, stablecoin settlement) in a unified platform.

How Skyocean Addresses SME Challenges

Challenge-Solution Mapping

SME Challenge (Research-Backed)	Skyocean Solution	Technical Implementation
Lack of capital access (50%+ of SMEs)	Token-based crowdsourced investment	SKYT tokens for access; investor profit-sharing via escrow
MNC economies of scale	Shared infrastructure and pooled resources	DKG (shared data layer); smart contracts (shared automation)
Technology gap	Ready-made blockchain platform	OriginTrail DKG, Polygon/Celo integration, ERC-4337 accounts
Limited bargaining power	Collective sourcing via B2B integration	B2B platform adapters; AI-powered price benchmarking
High transaction costs	Automation and disintermediation	Smart contracts replace intermediaries; DKG reduces verification costs
Compliance burden	Automated KYC/AML and documentation	DIDs/VCs for identity; DKG for document proofs; MiCA alignment
Information asymmetry	Transparent supply chain tracking	Real-time milestone attestation; public KA verification
Fraud/trust issues	Immutable audit trail	DKG-stored proofs; multi-party attestation; blockchain settlement

Investment Model Innovation

Problem: Traditional trade finance requires collateral, credit history, and banking relationships that SMEs often lack.

Solution: Skyocean’s profit-sharing model allows investors to fund specific trades in exchange for a percentage of profit. This converts trade finance from debt (requiring repayment regardless of outcome) to a form of equity-like participation aligned with trade success.

Research backing: Addresses the World Bank finding that >50% of SMEs cite capital access as a growth barrier. Our model doesn’t require creditworthiness assessment—investors assess individual trade opportunities.

Platform Democratization

Problem: MNCs dominate through technology, resources, and established relationships.

Solution: Skyocean provides institutional-grade technology (blockchain, DKG, smart contracts) as a platform service. All participants—regardless of size—access the same tools and operate under identical smart contract rules.

Research backing: Directly counters the “technology gap” and “control over resources” advantages documented in the Masroor & Asim paper.

Statistics and Market Data

Key Figures

SME Employment: 50% of global employment (OECD, 2019)
SME Business Representation: 90% of total businesses worldwide (OECD, 2019)
Trade Finance Gap: $2.5-2.6 trillion (Asian Development Bank, 2023)
Capital Access Barrier: Affects >50% of SMEs (World Bank, 2015)
Target Transaction Size: $20K-$500K (Skyocean pilot focus)
Target SME Size: 10-200 employees (aligns with global SME definitions)
Pilot Corridors: Ghana (agricultural imports/exports), USA-EU (cross-border commodity trade)

Geographic Focus

Skyocean’s pilot programs target regions with:

High SME density in commodity sectors (agriculture, processed goods)
Documented capital access barriers
Market turbulence (research shows higher blockchain adoption intent)

Pilot regions:

Ghana: Frozen poultry, agro-equipment imports
USA-EU: Agricultural commodities, cross-border trade corridors

Both regions have active SME commodity sectors, limited trade finance access, and alignment with government/NGO programs supporting SME development.

Conclusion

Academic research provides clear evidence that SMEs face systemic disadvantages in global trade: capital access barriers, MNC economies of scale, technology gaps, and anti-competitive practices. Blockchain technology—particularly when designed specifically for SME needs—can address many of these challenges through:

Democratized capital access (crowdsourced investment)
Shared infrastructure (economies of scale via platform model)
Transparency and trust (immutable records, smart contracts)
Automation (reduced transaction costs, compliance burden)

Skyocean’s platform design directly maps to these research findings, ensuring that we solve documented problems rather than pursuing technology for its own sake.

Blockchain Governance - How to structure decentralized decision-making
Supply Chain Transparency - Transparency’s role in driving blockchain adoption

References

Masroor, N., & Asim, M. “SMEs in the Contemporary Era of Global Competition.” University of Karachi. Read paper
Chang, Y., Iakovou, E., & Shi, W. (2019). “Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities.” International Journal of Production Research, 58(7), 1-18. DOI: 10.1080/00207543.2019.1651946 Read paper
World Bank (2015). SME Finance data.
OECD (2019). SME and Entrepreneurship Outlook.
Asian Development Bank (2023). Trade Finance Gap report.