10_muhammad_yunus_08 Editor's choice

Crowdfunding – A Historical Perspective

It is the universal truth that lending money has been incorporated in human’ s nature right from the beginning of times. However, the idea of crowdfunding and growth of small business loan/financing institutions is the talk of present and also of the coming future. Hence, the time lending money was presented within the human society the humans have faced drastic innovation back in the 1700s. This business loans are also a part of the human race for around centuries, which has surely brought about the concept of crowdfunding and modern theories of micro-financing.

However, the core implication, which has clouded today’s world, is the menace of recession which has brought about severe implications on Europe and particularly in the United States. What to do now after the storm? Well, the simple and constructive step is to stop looking back and find ways to recover the recession stricken economy of the nation. This has also led to the foundation of micro-economics which has stemmed out for making the structure of crowdfunding even firmer. Moreover, the concept behind the creation of crowdfunders’ based community comes out from an Asian country; called, Bangladesh, which is famous for its economical drive all over the world. A man named Dr. Muhammad Yunus was the catalyst behind the propagation of the very field.

He has started this company by lending a meager amount of only $27 as startup loan/financing to a woman who works at the farm. The success of those loans has made him realize the very core concepts of loans and has helped him to generate massive revenue from over 8 million customers.

Micro-financing also shares quite resemblance with crowdfunding and; therefore, enables us to go through a number of implications. Apart from that, micro-lending has made use of internet as the medium for transaction. It has been proved to be a keyhole for finding various investors, as well as donors for the development of modern crowdfunding community. As far as the first digitalized micro-lending company is concerned, the name of Kiva comes to the development of many horizons. Here, the people have the capability of creating their profiles together with deploying an efficient mechanism for posting their desired and their plans for denoted money.

A similar platform was also introduced in United States by the name of “Kickstarter”. This has proved itself to be the greatest revolution in the history of United States. It was created by a group of three entrepreneurs in 2009. They have also received a number of recognitions as well as awards for making best revolution in 2010 by the famous Times Magazine. It was solely based on donations and has helped numerous peoples to create changes in their lives as well as others. The enation of “Jumpstart Our Business Startup act” was also signed by President Barack Obama. This was a massive step which has provided liberty to numerous small ventures to raise their capitals within the United States.

The revolution does not happen in a minute, but it takes centuries to see the silver lining in the sky.

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