Blockchain finance may reshape SME credit access across Eastern Europe

SMEs account for the majority of businesses and employment across Eastern Europe, yet their access to finance remains uneven compared with large corporations. Traditional lending models rely heavily on collateral, audited financial statements, and long-standing banking relationships, all of which disadvantage smaller firms, especially in post-transition economies where capital markets are less mature.

Small and medium-sized enterprises (SMEs) across Eastern Europe continue to face chronic financing barriers despite years of policy reform and banking sector modernization. Limited collateral, fragmented credit histories, and weak information flows within supply chains have left many firms dependent on short-term loans or informal financing, constraining growth and resilience. A new study suggests that blockchain-based supply chain financing could offer a structural shift in how SMEs access capital, provided adoption challenges are addressed at the ecosystem level.

The findings are presented in the study Blockchain-Driven Supply Chain Financing for SMEs in Eastern Europe, published in the journal Electronics. The research examines why blockchain-based financing platforms remain underused despite their technical promise and identifies the conditions under which adoption becomes viable.

Why SME financing remains structurally constrained

SMEs account for the majority of businesses and employment across Eastern Europe, yet their access to finance remains uneven compared with large corporations. Traditional lending models rely heavily on collateral, audited financial statements, and long-standing banking relationships, all of which disadvantage smaller firms, especially in post-transition economies where capital markets are less mature.

The study outlines how supply chain financing has emerged as an alternative mechanism to bridge this gap. By linking financing to verified transactions between buyers and suppliers, supply chain finance allows SMEs to leverage receivables and purchase orders rather than physical assets. In theory, this reduces lender risk and lowers borrowing costs. In practice, however, conventional supply chain finance platforms still suffer from limited transparency, slow verification, and reliance on centralized intermediaries.

Blockchain technology has been widely promoted as a solution to these weaknesses. Distributed ledgers can provide immutable transaction records, automate contract execution, and enable real-time visibility across supply chains. For SMEs, this could translate into faster access to working capital, reduced fraud risk, and improved trust between trading partners and financiers.

Despite these advantages, adoption has been slower than expected in Eastern Europe. The study situates this gap within a broader digital transformation context, noting that technological potential alone does not guarantee use. Instead, adoption is shaped by organizational readiness, partner coordination, perceived benefits, and trust in both technology and institutions.

To analyze these factors, the authors extend the Unified Theory of Acceptance and Use of Technology, a well-established framework for studying technology adoption. By incorporating variables specific to blockchain and supply chain finance, the study moves beyond abstract discussions of innovation and focuses on the real-world constraints SMEs face when deciding whether to adopt new financial platforms.

What drives and blocks blockchain adoption in supply chain finance

The research is based on a survey of 200 SME managers and experts from seven Eastern European countries: the Czech Republic, Hungary, Moldova, Poland, Romania, Slovakia, and Ukraine. Using Partial Least Squares Structural Equation Modeling, the authors examine how different factors influence both the intention to adopt blockchain-based supply chain finance and actual usage behavior.

One of the study’s most significant findings is that supply chain partner readiness is the strongest predictor of adoption intention. SMEs are unlikely to adopt blockchain-based financing platforms unless their suppliers, buyers, and financial partners are also prepared to participate. This highlights the networked nature of blockchain systems, where value emerges only when multiple actors engage simultaneously.

Performance expectancy also plays a critical role. SMEs are more inclined to adopt blockchain solutions when they believe the technology will deliver clear operational benefits, such as faster financing approvals, lower transaction costs, and improved cash flow management. These perceived gains must be concrete and measurable rather than abstract promises of innovation.

Effort expectancy emerges as another key factor. Firms are more willing to adopt blockchain platforms when they perceive them as easy to use and compatible with existing workflows. Complex onboarding processes, unclear interfaces, and lack of technical support act as significant deterrents, particularly for smaller firms with limited IT resources.

Trust stands out as a central theme throughout the findings. Perceived trust in the blockchain platform significantly influences adoption intention, reflecting concerns about data security, system reliability, and legal enforceability. While blockchain is often described as a trust-enhancing technology, the study shows that trust does not arise automatically. SMEs must be confident not only in the technology itself but also in the governance structures surrounding it.

Interestingly, organizational blockchain readiness does not directly affect adoption intention, but it does influence actual use. This distinction suggests that while readiness alone may not motivate firms to adopt blockchain-based financing, it becomes critical once implementation begins. Firms lacking internal capabilities may express interest in adoption but fail to translate intention into sustained use.

The study also finds that social influence plays a limited role compared with more traditional adoption drivers. Unlike consumer technologies, blockchain-based supply chain finance does not appear to spread through imitation or peer pressure. Instead, adoption decisions are grounded in practical considerations related to efficiency, coordination, and risk.

Implications for policy, platforms, and financial inclusion

The study challenges the assumption that improving firm-level digital readiness is sufficient to drive adoption. Because blockchain-based supply chain finance depends on ecosystem participation, interventions must address readiness across entire value chains.

This means that public policy efforts should focus not only on SME digitalization but also on encouraging coordinated adoption among buyers, suppliers, and lenders. Incentives for anchor firms to participate in blockchain platforms could have cascading effects, lowering barriers for smaller partners.

Second, the research underscores the importance of trust-building measures. Clear regulatory frameworks, standardized data governance rules, and transparent dispute resolution mechanisms are essential for reducing uncertainty. Without these safeguards, SMEs may view blockchain platforms as technically impressive but institutionally risky.

For platform developers, the study highlights the need for usability and integration. Blockchain systems that require extensive technical expertise or disrupt existing accounting and enterprise systems are unlikely to gain traction among SMEs. Simplified interfaces, interoperability with existing tools, and clear value propositions are more likely to drive adoption than advanced technical features alone.