The issuance of securities through tailored State backed IPO and FPO throws SMEs to murky legal regimes based on compliance. However, irrespective of all that, it is evident that SMEs are becoming more important, hence, the need to give them the attention that they deserve.
The World Trade Organisation (the “WTO”) Report of 2016 “Levelling the trading field for SMEs”, it mentions that SMEs are organisations that have employees of a minimum of 10 and a maximum of 250. The definition by WTO has received backing from the Eurostat Statistics Explained “Statistics on small and medium-sized enterprises” but goes ahead to make further subcategories. In order to appreciate this finding, it is imperative to assess the number of founders and teammates of start-ups (which form part SMEs) taking advantage of crowdfunding as a source to finance their venture. According to McCarthy Denning, an International Law firm, states that SMEs are taking advantage of Angel Investors and or use crowdsource platforms to gain money for running their respective projects, not to mention the fact that they are made up of small cohort of co-founders.
In the year 2000, the Organisation for Economic Co-operation and Development (the “OECD”) through its brief policy “Small and Medium-sized Enterprises: Local Strength, Global Reach”, it reported that SMEs account for at least 95% of the firms in the member States, not to mention that the SMEs promote 60%-70% of employment. Therefore, in assessing the availability of resources, thus, labour, money, infrastructure, and or technology, during the year 2000 and now, it is evident that there is immense change that should project the view that the SMEs play a major role in revenue generation and employment rates in the recent years and years to come.
The SMEs face various challenges but among those many, the most critical one is availability of the required resources. Therefore, many SMEs windup because of lack of various forms of support, which can be based on financial and labour, and lack of political will within a given jurisdiction to advance a favourable room for the SMEs.
In light of all the above, the Conglomerate One, provides a platform that is in line with the current innovative and reliable technology across the globe, which includes the use of Smart Contracts that are ERC-20 based on Ethereum Blockchain Technology. The Conglomerate One will harness the use of technology and effect clear protocols based on codes that will make it easy for SMEs to easily engage in vertical, horizontal or conglomerate merges and acquisitions.
The relationship between the Conglomerate One and the SMEs will interlink but with a minimization of direct and or indirect liability, which include but not limited to civil or criminal liability, tax or statutory based liability, whether strict or not.