It’s become impossible to ignore cryptocurrency and blockchain — it’s everywhere, and there is no sign of slowing down. As a result, blockchain-based exchanges of information and tokens are releasing a wave of new possibilities for entrepreneurs.
The rush to create innovative business solutions that are faster, more secure and more transparent is on. Blockchain is already contributing to real-world improvements in the world of entrepreneurship; here are six examples.
1. Increasing access to entrepreneurship education.
People of all ages and from all walks of life are becoming increasingly interested in entrepreneurship, and many simply don’t have the time or resources to seek further education from formal institutions. Someone with a 9-to-5 job trying to launch his or her own business likely doesn’t have time to enroll in an MBA program.
While formal education isn’t a requirement, many new entrepreneurs seek flexible, reliable and affordable educational options to help them develop the skills needed to launch their businesses. SuccessLife is using blockchain tokens to offer video content, digital courses and personal coaching to aspiring entrepreneurs, covering topics such as management and investment techniques.
The tokens render the transactions that provide these educational opportunities reliable and cost-effective. Entrepreneurs only need an internet connection to access the educational content.
2. Unlocking crowdfunding opportunities.
One of blockchain’s most newsworthy contributions to entrepreneurship is its effect on crowdfunding campaigns. In fact, blockchain startups raised $5.6 billion in funds in 2017, mostly driven by community campaigns. This blockchain-based fundraising model has proven so successful that it’s attracting plenty of mainstream investment.
Despite the success of blockchain-centric crowdfunding campaigns, the traditional crowdfunding market is still extremely inefficient. Only 1.9 percent of campaign funds go to developing countries and 78 percent of campaigns fail to reach their targets. The lack of accessibility has led some innovative companies to combine blockchain with traditional crowdfunding to give power back to entrepreneurs around the globe.
3. Providing user-friendly financial tools.
More new ventures are using cryptocurrencies in addition to fiat currencies in order to manage their financing, whether that takes the shape of a token sale or an entrepreneur raising funds through adroit trading on crypto exchanges. Managing multiple fiat and crypto accounts, however, has always been a complicated task.
As crypto adoption becomes more prevalent, it is important to focus on education and ease of use, especially within financial services.
4. Cultivating new investment opportunities.
Entrepreneurs across every industry are constantly looking for new ways to diversify their investments, and the introduction of coin-based transactions is opening up new possibilities.
5. Developing customer-loyalty platforms.
Customer loyalty is essential for all businesses. To nurture business-customer relationships, many entrepreneurs try to create customer-loyalty problems. Such programs, however, can require more technological headaches and bookkeeping hurdles, creating one more data field for entrepreneurs to track and manage.
Blockchain is an ideal tool for helping entrepreneurs develop low-stress customer-loyalty programs, rewarding repeat customers with special incentives and fostering close relationships.
Blockchain’s automatable transaction ledger can keep track of customer interactions and adjust customers’ loyalty status appropriately.
6. Creating reliable agreements.
Entrepreneurs thrive in a network of mutually supportive relationships that allow them to launch their ventures. Many of these relationships, such as between investors and founders, take the form of official or unofficial contractual agreements. When these agreements fall through, entrepreneurs struggle. A product launch, for example, could be ruined if a deal with a manufacturer collapses.
Blockchain signatures and smart contracts provide effective, affordable options for entrepreneurs seeking reliable legal contracts.
Tennessee recently made smart contracts legally binding in the state, and other locales seeking to nurture tech innovation are likely to soon follow their lead.