Crowdfunding Model Essay

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

responsible for extending credit there. They soon realized that it is more profitable to lend to them at high interest rates than not lend to them at all. For these reasons, many of the loans made to individuals in minority neighborhoods were made at sub-prime rates regardless of the person's economic status or credit

From the data discovered based on increase of technology, it provided an understanding of the traditional process of being granted or providing loans and mortgages. Banks traditionally grant loans to individuals or businesses that meet specific credit requirements and would receive periodic payments. This process continues until the loan is fully paid off. Due to the increase in technology, banks were able to lower their costs for transactions by securitizing loans electronically. This innovation allowed them to bundle up all small loans into a standard debt security, which then could be bought and sold in the financial market. This led to a structured credit product offering that generated large cash flows from a collection of underlying assets with certain risk management. Investors had the opportunity to pick and choose what they wanted to purchase depending on their likes and risk-taking

Poverty, hunger, and malnutrition remain rampant across the world today. Countries such as Africa and Asia are struggling with high numbers of poverty and malnutrition, which is causing millions of men, women, and children to face death under the everlasting shadow of poverty. In order to eradicate the darkness of poverty, companies and institutions are taking up different initiatives to help those in poverty stricken countries. One such initiative is known as micro financing, which was created by a Bangladeshi economist, Muhammad Yunus. Micro financing are small loans given to people in poor countries who want to start a business or need some financial assistance. A famous website for micro financing is Kiva.org, which has been lending money to people since 2005 and has witnessed great success in doing so. The website has made the process of lending money to individual extremely simple and it is something that any individual can partake in. For example, If I wanted to lend some money to any of the numerous entrepreneurs on the website than I would first begin by choosing the lend category. After this, the website will list some of the most popular buyers on the right hand side and as of now, Emperatriz De América Group, which is a group of women who want to borrow money to buy fish. The website lets the lenders sort through different types of borrowers based upon how much money they are in need of. The one thing I liked the most about the website is

Becoming an expert in Islamic economics and finance field is one of my long-term goals in life. I started to organize and made a plan towards achieving that dream since senior high school. The concern towards Islamic economics and finance concept, and its application for society and the country began when I was reading a book entitled Islamic banking-theory and practice. After finishing reading the book, my interest in Islamic economic and finance topics rose and strengthen my own determination to become the expert of Islamic economics and finance. The main principle of Islamic economics and finance which offers the just and ethics in economic activity, poverty alleviation through income distribution mechanism, and prevention of economic and

An Islamic financial institution such as financial banking has been established before two or three decades ago in the aim to provide satisfactory financial facilities to the interested parties as compared to conventional banks. In 1974 Dubai Islamic bank which is the first Islamic commercial bank was established and later Islamic Development Bank (IDB) has been established in 1975 (Hennie and Iqbal, 2008).

The implications for entrepreneurs seeking to gain global access to crowd capital are discussed encompassing seven streams impacting the entrepreneurship innovation process from product concept, design leading up to commercialization of resulting intellectual property from crowdsourced initiatives along the lines of: (1) decision to buy, build or borrow the crowdsourcing platform; (2) ownership, technology transfer, and intellectual property rights; (3) leveraging value network, globalization, virtual communities, collectivities and social media; (4) financial model and innovation commercialization; (5) leveraging the business model and value creation by aggregating key competencies between the firm and the crowd while facilitating IP

Sometimes, you might even find freelancing individuals to cater the concerned investment opportunity to the investors. Not all investors get interested for this investment rather only few categories join the community. Different investment reviews of the present age can be surely followed for getting necessary facts regarding how does crowdfunding work.

From almost the beginning, the idea of community and local based Slow Money ideals being served through crowdfunding was acknowledged here in Southern California. Our Slow Money SoCal founding members were working against a conservative legal backdrop and a sprawling suburbia that made local investing and the community building it entails all the more difficult. In our early days, while we measured the idea of crowdfinancing still serving the Slow Money Principles, we decided it was a legitimate sounding of our regional voice. Today, the access to equity finance through crowdfunding is just another opportunity to continue to serve ways to catalyze capital while exploring the inherent tension between the virtual world and the visceral character of a place based investing.

The world of crowdfunding industry is fast-moving and ever-evolving. In 2011, before JOBS Act, crowdfunding was growing to an estimated 452 platforms worldwide (Wasik, 2012, p. 144). By 2014, according to Massolution, there are 1,250 active crowdfunding platforms worldwide (Marketwired, 2015). Crowdfunding industry has raised billions of dollars for businesses and other fundraising projects and will continue in the future.

Albeit the growth of funding scale, the failure rate of crowdfunded projects is very high. A report from Statistica indicates that, as of April 2017, the success rate of fully funded projects on Kickstarter.com was 35.79 percent. In other words, two-third of the listed projects failed, implying the need for more research on the mechanism and factors that affect project success. In a study by Gerber and Hui [34], they found one of the major deterrents to funders’ participation - lack of trust.

Abstract. Propensity score matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin with, a first decision has to be made concerning the estimation of the propensity score. Following that one has to decide which matching algorithm to choose and determine the region of common support. Subsequently, the matching quality has to

Lending-based crowdfunding is a nascent fintech market where individual investor and borrower meet each other to make transitions. [Feature] This market is attracting an increasing amount of attention from researchers in recent years. Some researchers examine the determinants of probability of successfully funding, the interest rate and loan performance, others care about the various characteristics of borrowers, the decision making behavior of investors. There are also studies on the design of platforms. However, one aspect which still receive inadequate attention is the username mechanism. Interesting topics include: What is the association of username with lending transaction? What is the role of username in investment decisions?

Elements of the crowdfunding methodology possess attributes that are fully in line with Islamic concepts and ultimately Islamic business and social principles. Such interlinked attributes can be summarized as follows;

Capitalism and socialism as the prevailing systems have been proven to be unsuccessful in solving economic problems comprehensively. One of the failure evidence, global financial crisis in 2008, which demonstrated reckless financing instrument and moral deficiency, provides a wider opportunity for Islamic moral economy to be perceived