New-Age Entrepreneurship: Why Crowdfunding Amounts to More than Just Raising Money
Entrepreneur's New Year’s Guide
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When it comes to turning entrepreneur for the first time this year, there is lots to cheer about as unconventionality is the first thing that is being sought from entrepreneurial solutions which are also actually leading to solving a multitude of issues plaguing society. In this regard, if you are an entrepreneur with the unconventional/creative acumen but feel bogged down by financial crunches; you need not fret as there is a crowdfunded way out.
Crowdfunding, though not a new trend, has picked up in recent times due to the fact that today’s entrepreneurial community has begun to realize the importance of having creative solutions for societal problems. This has led to healthier entrepreneurial empowerment as even the mass could easily turn quality entrepreneurs and foster their ambitions of being associated with businesses. The best example here is that of films which are now taking the crowdfunded route whilst finding acceptance amongst the community.
Hence, with crowdfunding fostering quality entrepreneurship in 2018 (and beyond) being the criteria, Entrepreneur India lists 5 reasons why this is the new driver of change for the youth:
Recognition for creativity: If you have a campaign which you think has the potential to make it big; you could use the multiple crowdfunding platforms available; here, the community that funds your ventures is well informed of what your product can potentially achieve. This translates into an automatic evaluation of your innovation. If your development is deemed creative, by the crowdfunders, the venture is supported by a particular community at any given instant of time; thereby according full recognition to your creative acumen.
Elimination of roadblocks: A plaguing issue for today’s entrepreneurs is finances. This issue is mitigated at the initial level through crowdfunding. However, the most important aspect is the “We are with you” feel that naturally comes to the fore whenever you receive funding for your ideas; irrespective of whether you meet your desired funding targets or not. This feel good feel potentially serves as a shot in the arm for entrepreneurs as they could come out newer ideas whilst making attempts to infuse the creative elements.
Actual fostering: When you approach crowdfunding platforms, it is not only to raise funds; rather it is to showcase your idea to the wider community. This should potentially lead to a situation where your “really good” innovations are picked up on forums and discussed about; these aspects should add to your entrepreneurial factor. When you have solutions for society, your innovations are bound to be recognized on crowdfunding platforms.
Independence: You heard it right! You would be in a position to start ventures independently and even think independently as well; without yielding to entrepreneurial pressures. A crowdfunding platform is intended at pursuing innovation by mitigating the basic entrepreneurial hindrances (ideas and funding). With an initial capital raised through crowdfunding, you would be a better judge at times when you would need to choose your next fundraising plans (venture capital or debt fund raising).
Survival of the fittest: Essentially, when you have registered for your venture to get crowdfunded, your backers would comprehensively evaluate what you have in store. Now, remember that this evaluation is done purely on your skills and entrepreneurial merit; rather than on your business models. Post this, backers decide whether your venture is fit to get funded or not; if no, you would have to resort to an introspection and development of more robust models (innovation), thereby getting to eliminate sub-standard concepts and allowing only ventures with merit to be backed.