Crowd Funding: Financial Service for Unserved Crowds in Indonesia
- DOI
- 10.2991/imm-16.2016.17How to use a DOI?
- Keywords
- crowd funding, Indonesia, SMES, financial inclusion, mudharabah
- Abstract
The low level of financial inclusion or limited access to capital is one of most significant constraint faced by micro, small and medium-sized enterprises (SMEs) in Indonesia. To solve the problem, this study proposed a model of financing for SMEs through crowd funding mechanism that is currently emerging as a solution to solve the problem of funding sources, especially to finance new projects. From the study conducted with qualitative methods, it was concluded that the appropriate crowd funding model was the investment model by utilizing the principle of profit sharing such as mudharabah. The principle of sharing is considered as the fairer and precise business management cooperation mechanism if it is compared with conventional contract. Crowd funding business model consists of three main actors, namely SMEs as those in need of capital, crowd funders as the party who provides the capital, and crowd funding operator as the party who brings together and facilitates SMEs with crowd funders. Another supporting factors are website with crowd funding platform and bank as payment gateway.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Taofik Hidajat AU - Ina Primiana AU - Sulaeman Nidar AU - Erie Febrian PY - 2016/10 DA - 2016/10 TI - Crowd Funding: Financial Service for Unserved Crowds in Indonesia BT - Proceedings of the International Conference, Integrated Microfinance Management for Sustainable Community Development (IMM 2016) PB - Atlantis Press SP - 109 EP - 115 SN - 2352-5428 UR - https://doi.org/10.2991/imm-16.2016.17 DO - 10.2991/imm-16.2016.17 ID - Hidajat2016/10 ER -