India is a country filled with aspiring entrepreneurs who are looking forward to getting a chance in life that could make their entrepreneurial dream turn into reality.
Most of the youngsters working in multinational companies have the dream of opening their very own company but their dreams are buried deep within themselves due to the lack of financial funding. The banks and other private money lending sectors available in the country offer loans at high interest rate. Along with the heavy interest rate, most of the people applying for these loans are being rejected due to the lack of proper substantial paperwork and assets. The concept of crowdfunding has created greater revolution among these youngsters allowing them to pursue their dreams. Hence the necessity of for crowdfunding has gradually increased within the country and it has been used to develop the economic conditions of the country. Some of the common reasons that support the requirement of crowdfunding within the country includes,
Encourages the youth
The concept of crowdfunding allows youth of the country to follow their dreams without subjecting themselves to the tiring process of the loan application. These people can still pursue their dreams through crowdfunding technique that allows them to get money in small amounts from common people. . The backers of the project are being credited with rewards.
In countries like India, where the Healthcare system is not supported by insurance or any other government schemes, it has always been a common problem to raise money for critical situations. The concept of crowdfunding has saved the lives of multiple people who raise money for paying the hospital bills. It's not just for money but the crowdfunding technique has also been used for or availing donors in blood and other forms of organ donations.
NGO based crowdfunding
The common concept of NGOs has been to collect money for helping several socially challenged people. In the past, people conducted programs and other initiatives to attract investors who would fund these NGOs with big fat checks. But nowadays money is being collected from multiple personalities with the help of these crowdfunding techniques allowing everyone to participate in these types of social charities.
Prevents the misuse of money
Over the years the country has seen several instances where people misuse the money in the name of charity and other services. But the money collected through crowdfunding is completely legalised and the entrepreneur is responsible for providing proper details to the investors from time to time. This strategy prevents the concept of misusing money.
Even though there are multiple options available to raise funds, crowdfunding is still being preferred by entrepreneurs as the best source of collecting money to pursue their dreams. For a country like India, these types of concepts will assist in the economic development of the country.