The Role of Islamic Crowdfunding Mechanisms in Business and Business Development

Global J. Bus. Soc. Sci. Review 7 (1) 1 – 7 (2019)

14 Pages Posted: 10 Sep 2019

See all articles by Achsania Hendratmi

Achsania Hendratmi

Airlangga University

Puji Sucia Sukmaningrum

Airlangga University

Muhammad Nafik Hadi

Airlangga University

Ririn Tri Ratnasari

Airlangga University - Faculty of Economics and Business

Date Written: March 19, 2019

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

Suggested Citation

Hendratmi, Achsania and Sukmaningrum, Puji and Hadi, Muhammad Nafik and Ratnasari, Ririn Tri, The Role of Islamic Crowdfunding Mechanisms in Business and Business Development (March 19, 2019). Global J. Bus. Soc. Sci. Review 7 (1) 1 – 7 (2019), Available at SSRN: https://ssrn.com/abstract=3362383

Achsania Hendratmi (Contact Author)

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Puji Sukmaningrum

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Muhammad Nafik Hadi

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Ririn Tri Ratnasari

Airlangga University - Faculty of Economics and Business

Airlangga 4-6
Surabaya, East Java
Indonesia

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