RISKebiz MicroEquity Platform for Small Businesses and MicroEnterprises
Financial Services - , British Columbia, Canada
RISKebiz MicroEquity Platform for Small Businesses and MicroEnterprises Employees
RISKebiz MicroEquity Platform for Small Businesses and MicroEnterprises Details
The RISKebiz MicroEquity platform is a service where entrepreneurs can share their ideas for microenterprises and have them funded through equity offerings. We believe micro equity helps to realize the full potential of microfinance by addressing some of the key challenges with microcredit. Our platform will be as entertaining as it is functional, so it will attract as many entrepreneurs and investors as possible. Microcredit has traditionally been the most common source of funding for microenterprises, usually coming from a Microfinance Institution (MFI). However, micro loans have had limited impacts on the profitability and growth of micro enterprises (Banerjee et al., 2015) in part because they are designed to minimize risk of default and discourage investments in riskier projects with higher expected returns (Fischer, 2013; Field et al., 2013; Battaglia et al., 2019). Micro loan funded businesses rarely grow beyond a subsistence level of entrepreneurship. In addition, the high interest rates and immediate repayment characteristics of loans made them too burdensome on entrepreneurs, limiting their profit potential and reducing any positive social impact.Microequity offers a solution to this problem with the investor sharing both the risk and reward of the investment. Microequity contracts in which payments to the investor are tied to microenterprise performance increase the willingness of both investors and microenterprises to take on riskier and more uncertain projects (Kerr and Nanda, 2011). Our MicroEquity platform is build on the Stellar Blockchain. Stellar is a multi-currency payment backend that tens of thousands of people use every day. It's decentralized, open-source, and developer-friendly, so anyone can issue assets, settle payments, and trade. Stellar is a blockchain, but it works more like cash. Stellar is much faster and cheaper than bitcoin and it uses far less electricity (Stellar Development Foundation, 2020).
