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/).

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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  -