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DOI 10.35609/jber.2019.4.1(2)

Reference to this paper should be made as follows: Hendratmi, A; Sukmaningrum, P.S; Ryandono, M.N.H. (2019). The Role of Islamic Crowdfunding Mechanisms in Business and Business Development, J. Bus. Econ. Review, 4(1) 10 – 23 https://doi.org/10.35609/jber.2019.4.1(2)

Received: December 08, 2018 | Accepted: March 18, 2019

The Role of Islamic Crowdfunding Mechanisms in Business and Business Development
Achsania Hendratmi, Puji Sucia Sukmaningrum, Muhamad Nafik Hadi Ryandono, Ririn Tri Ratnasari
Faculty of Economics and Business, Universitas Airlangga, Jl. Airlangga No.4, 60286, Surabaya, Indonesia Abstract

Objective - This study aims to determine the role of Islamic crowdfunding towards business development of start-up businesses financed in Singapore, Malaysia and Indonesia.

Methodology/Technique - This study uses a qualitative approach with an exploratory case study strategy. The data collection was carried out by conducting in-depth interviews with CEOs and COOs of Kapital Boost and CEO Investee (funded SMEs) informants.

Findings - The results show that there is an increase in assets, sales turnover, and the capacity of Micro, Small and Medium Enterprises (MSMEs) and Startup businesses that received funding through campaigns on the Kapital Boost platform. In addition, pioneering business people can get easier access to financing compared to financing through bank-provided credit.

Novelty - The findings of this paper can be used to develop crowdfunding platform will be implemented in Muslim countries or countries with a majority Muslim population.

Type of Paper: Empirical.

Keywords: Crowdfunding Platforms; Islamic Crowdfunding; Business Development; MSMEs; Start-up Companies.

JEL Classification: E44, M21, M29.

DOI: https://doi.org/10.35609/jber.2019.4.1(2)

Price: USD 25