Meaning ● Decentralized Finance (DeFi) for SMBs represents the application of blockchain-based financial services to small and medium-sized businesses, enabling enhanced access to capital, improved operational efficiency, and automated financial processes. By leveraging DeFi protocols, SMBs can bypass traditional financial intermediaries, securing funding through decentralized lending platforms, reducing transaction costs with cryptocurrency payments, and automating invoice management using smart contracts. ● Integrating DeFi solutions promotes operational agility by providing immediate access to global markets and diverse investment opportunities, particularly valuable for SMBs operating in international trade. Through smart contract automation, companies can streamline supply chain financing, execute secure cross-border payments, and manage digital assets with increased transparency, thereby minimizing administrative overhead. Decentralized Finance fosters financial inclusivity by facilitating access to credit for SMBs previously underserved by conventional institutions, thus improving their ability to invest in growth initiatives and technology upgrades, including advancements in Artificial Intelligence. ● DeFi also brings efficiencies to accounting and auditing processes, reducing human error and automating compliance reporting through verifiable on-chain transactions; furthermore, the reduced overhead in financial tasks translates to lower costs and improved capital allocation, accelerating innovation and creating a stronger value proposition.
