Blockchain-Enabled Traceability And Supplier Finance: Driving Financial Inclusion In Digital Supply Chain

Abstract

Abstract The digital transformation of global supply chains presents unprecedented opportunities, yet it concurrently exacerbates the existing gap in financial inclusion for Micro, Small, and Medium Enterprises (MSMEs). Traditional supply chain finance (SCF) models often fail to serve these small suppliers due to high information asymmetry, lack of verifiable collateral, and manual, paper-intensive processes, leading to significant liquidity constraints. This study proposes and empirically investigates blockchain technology as a foundational solution to mitigate these challenges. Specifically, it examines how blockchain-enabled traceability fosters greater trust and transparency, which in turn facilitates more accessible and inclusive supplier financing mechanisms. Employing a mixed-method approach (Quantitative N=150−180 survey and Qualitative interviews) with a cross-sectional design, the research analyzes relationships using descriptive statistics, regression, and factor analysis. Preliminary findings are expected to demonstrate a significant positive impact of blockchain adoption on financial inclusion metrics for MSMEs. The research contributes by providing a rigorous framework for practitioners and policymakers aiming to leverage decentralized technology to create a more equitable and sustainable global trade ecosystem. Keywords: financial inclusion, blockchain enabled supply, micro, small, and medium enterprises,