Hershey, Pennsylvania
New York, New YorkBeijing, China
Finance Strategies for Medium-Sized Enterprises: FinTech as the Game Changer

Finance Strategies for Medium-Sized Enterprises: FinTech as the Game Changer

Chen Liu (Trinity Western University, Canada)
Copyright: © 2019 |Pages: 23
DOI: 10.4018/978-1-5225-5784-5.ch008
OnDemand:
(Individual Chapters)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

This chapter discusses how FinTech—technology-enabled financial solutions and services—can optimize finance strategies of medium-sized enterprises. Using a balance sheet model, the chapter integrates medium-sized companies' financing strategies, working capital management, and investment decisions and discusses FinTech solutions in each area to suggest best practice. Specifically, the chapter first discusses how crowdfunding and its different types could provide alternative financing for medium-sized enterprises. Second, FinTech solutions for online payment and transfer, invoice finance, supply chain finance, and trade finance help medium-sized enterprises optimize their working capital management. Third, blockchain technology and artificial intelligent (AI)-based decisions tools could potentially help medium-sized businesses optimize their decision-making process. This chapter also suggests future work that will allow us to better understand FinTech applications in medium-sized enterprises.
Chapter Preview
Top

Background

While many studies have examined various aspects of small and medium-sized enterprises (SMEs), only few studies focus on medium-sized enterprises (e.g. Vemic 2017a, 2017b). As a result, there is still not an agreed-on worldwide definition on what can be considered as “medium-size”. For instance, the European Commission defines medium-sized companies as those with the number of employees between 50 and 249, turnover of €10 million to €50 million, and a balance sheet size of €10 million to €43 million.1Vemic and Stefanova (2017) define medium-sized enterprises based on the number of employees—15 to 199 employees in Australia, 250-499 in the US, 100-499 in Canada, and 50-249 in the EU. As the different definition is based on different market size of these countries, a general, but relatively loose, agreement is that medium-sized enterprises are still in the group of SMEs, but of larger size and more developed than early stage entrepreneurial firms and small business.

Complete Chapter List

Search this Book:
Reset