| Title | From Micro-Financing and Base of the Pyramid Concept to Private Social Business by CROWDINVESTING/CROWDFINANCING as a Modern Phenomenon and Chance for Economy |
|---|---|
| ID_Doc | 76992 |
| Authors | Schenk, R; Bielik, P; Horska, E |
| Title | From Micro-Financing and Base of the Pyramid Concept to Private Social Business by CROWDINVESTING/CROWDFINANCING as a Modern Phenomenon and Chance for Economy |
| Year | 2013 |
| Published | |
| Abstract | The micro-credit movement has the noble goal - it is supposedly the largest - to resolve a lack: The lack of credit in developing countries. Is this the key to combat all other emergency? There are other requirements to avoid poverty and to let this capital crow into increasing welfare by creating employment and converting individual ideas into commercial chances. Besides the availability of capital, it is important to create clear property rights of individuals and set the focus on a sustainable education system. Additionally industrialized countries should strengthen their CSR policy towards developing and emerging countries. But actually there is a big problem in the "rich" countries in the way of capital. To supply the economy with capital becomes more difficult as a result of the global finance crisis and the lasting Euro debt crisis. The capital markets fail more and more and the crisis in Europe could infect also other parts of the world. From necessity, since 2011 arose the CROWDINVESTING movement with its roots in the USA and there development in Western Europe and especially in Germany. By using the power of social networks and the wisdom of the CROWD of Internet user it is possible to finance enterprises by private placements of capital. For this purpose, each small amounts of money from the so called Crowdinvestors are accumulated via special online Crowdinvesting platforms to a considerable sum to finance enterprises by creating participations between these Crowdinvestors and each of the enterprises. Team of experts at the Slovak University of Agriculture in Nitra is developing an ideal model of Crowdinvesting as a sustainable instrument of financing not only startups but also small and medium enterprises. A result of research work, it could be, that Crowdinvesting is also possible to use it as a kind of PSB2 (Private Social Business) in for example developing or emerging countries. "Wealth is created through enterprise and entrepreneurship requires loans" (Joseph A. Schumpeter). Globalization was enforced by ICT3 and Crowdinvesting is also possible by ICT. The Crowdinvesting movement is predicted for a dynamic movement in Europe. If Crowd Investing works sustainably, it can also be used internationally. |
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