Crowd funding: the power of the crowd is driving the future of business

Finance

For becoming a successful entrepreneur it is necessary to obtain and manage the various resources for smooth running of business. Out of various resources Finance pose a biggest challenge in the front of a entrepreneur. There are numbers of traditional alternatives like bank financing, loan taking, and issue of shares. Bond, venture capital is available to individual but all these have some pros and cons. In the recent years a new alternative source known as crow funding emerged for entrepreneurs. It helps the entrepreneurs to fund their business project directly with the help of small amounts. The word crowd denote to mass or group of persons who provide finance to entrepreneur in return of some monetary and non monetary reward. It is a new way to finance the new project by providing information to public and by attracting & attaching them with new project. In recent years the concept of crowd funding gain a lot of acceptance & growth. The main benefit of crowd funding is to entrepreneur who seeking for fund is to raise it lower cost and it provide higher return to investors. But it does not mean it is free of risk. This research paper mainly focus on the crowd funding concept, its growth all over the world, future prospects and problems attached with it.

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