ABC Journal of Advanced Research, Volume 11, No 2 (2022) ISSN 2304-2621(p); 2312-203X (e)
Copyright © CC-BY-NC, i-Proclaim | ABCJAR Page 83
Crowdfunding: A New Approach to
Entrepreneurship's Startup Phase
Md Asad Noor
1*
, Tanjela Hossain
2
, Hasan Shirazi
3
1
Assistant Professor, Green Business School, Green University of Bangladesh, Dhaka, BANGLADESH
2
Assistant Professor, Dept. of Business Administration, Central Women’s University, Dhaka, BANGLADESH
3
Associate Professor, Dept. of Business Administration, Central Women’s University, Dhaka, BANGLADESH
*
Corresponding Contact:
Email: asadronnie@gmail.com
Manuscript Received: 14 August 2022
Revised Submission: 01 October 2022
Article Accepted: 09 October 2022
ABSTRACT
Investors may support new commercial, cultural, or social enterprises in
exchange for future commodities and activities. Crowdfunding is an essential
part of project finance right now. Many people are intrigued about how
crowdfunding works and how it may help start new businesses. Still, there is a
lack of understanding and expertise on how crowdsourcing works and how it
may assist these new initiatives to be successful. The most challenging task is
obtaining financial support before establishing an entrepreneurial or creative
venture. If the developer lacks links to venture capitalists or banks and a solid
financial track record or commitment, they may have trouble getting project
funding. This article explains crowdsourcing, a new kind of finance for
company owners and project creators. According to this survey, the industry is
not mainly established. Instead, it outlines CF's qualities and critical players.
Crowdfunding enables a creative or patronage concept to be realized by
collecting finances from many people online. Crowdfunding may be the
answer for businesses or creatives that need resources. Research has
uncovered many crowdsourcing business concepts and finance sources. We
used empirical data to evaluate how it would assist capital deficit units and the
strategy's merits and downsides from the founders, funders, and platform
perspectives.
Keywords: Alternative Financing, Alternative Investment, Crowdfunding, Entrepreneur, Innovation
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INTRODUCTION
In recent years, non-traditional project funding options have increased. This tendency is
projected to continue, particularly among small-business owners. Changes in social
structure and technology are leading to creative ways to support social, artistic, and
economic groups. Traditional financial institutions lag behind their modern challengers.