Meaning ● Decentralized Autonomous Organizations (DAOs) represent a novel approach to organizational structure, offering Small and Medium-sized Businesses (SMBs) a path toward automated governance and operational efficiency. Within the context of SMB growth, a DAO functions as an internet-native entity using blockchain technology to execute predefined rules, diminishing the need for traditional hierarchical management. This translates to reduced operational costs and faster decision-making processes, particularly advantageous in competitive markets. ● Automation is further enabled through smart contracts, which self-execute when conditions are met, streamlining routine tasks and fostering a more agile business model. For SMB implementation, DAOs can facilitate community-driven product development, optimize resource allocation, and enhance transparency for investors, customers, and other stakeholders. The degree of decentralization must be strategically tailored to each SMB’s specific operational needs and risk tolerance. ● Investment in blockchain development knowledge and robust risk assessment are necessary. Successful integration can unlock new growth opportunities, drive operational agility, and promote more inclusive governance, contributing significantly to SMB competitive advantage within their industry.
