Asking people for money is never easy, but it's a crucial step in building a business. In the current economic climate, with bank loans hard to come by, hitting up family and friends for cash is one of the few ways would-be entrepreneurs can get a company off the ground.
What if there was another way? Creative thinkers in the nonprofit world have come up with a game-changing model for increasing donations: crowdfunding. Combining the far-reaching power of the Internet with an accessible, low-entry-cost attitude, crowdfunding sites have shown that a lot of small contributions can add up to a major impact.
One of the most successful crowdfunding sites, Kiva.org, facilitates microfinance lending around the world. The site profiles the people and projects looking for funding, whether it's a shopkeeper looking to expand in Honduras or an Iraqi widow who wants to buy an industrial sewing machine for her growing tailoring business. Donors can contribute as little as $25, with the expectation that they will be paid back (Kiva borrowers as a whole have a 98% repayment rate).
To read the full, original article click on this link: Model for Small Business Funding Reform
Author: Elizabeth Blackwell
