Let crowd funding helps society

The Crowd funding is the way to soliciting small amount of funding from expanded pool of eligible investors often terms as general public. This funding methodology involves greater use of technology — the project/idea that needs to be funded is publicized over a digital platform, tapping a wide and diverse range of qualifying internet users to gain financial support.?After the shock of 2008 financial market the concept ‘Shared Economy’ have revolutionized the global financial landscape, largely to address difficulties faced by entrepreneurs, early-stage enterprises, and micro, small and medium enterprises (MSMEs) in raising growth capital.?An estimate says that 70% of emerging markets lack access to credit. The situation is exacerbated by stringent collateral requirements, strict financing covenants, and extensive lending conditions and documentation requirements, hence restricting enterprises’ access to formal lending channels. Access to formal financial credit is even more difficult for start-ups with no previous history of sustained cash flows or integrity-related parameters, including reports from credit information bureaus.?In today era digital infrastructure usages to channel the funds from retails and institutional investors to provide liquidity and capital support to emerging entities especially SMEs and startup can unlock significant economic advantage. According to the reports, not only the corporate but the house is also incomplete without technology where we have numerous electric devices as well as smart equipment. In the same way the use of mobile phones and laptops is also essential in today’s’ era. Many people work for social cause. Therefore, crowd funding play a significant role for all them to raise funds for some noble cause.

Pakistan is a developing country with a great passion of growth. Technology has entered in almost every sector of Pakistan as it has boomed in the best possible way since the past years. Social media empowered and become a effective platform to share everything they want. Several NGOs and small group of people are using social media to raise funds. Different Non-profit organizations run campaigns to raise funds for their projects using some traditional techniques i.e. by trending on hashtags, tweeting and creating Facebook pages. More than 85% of Pakistan population is middle or under middle class and about 25M Pakistani use social networks.

It is allowed in Pakistan; however, the crowd funding websites in Pakistan are as follows:

·???????Seedout

·???????Transparent Hands

·???????Care Foundation

·???????Pink ribbon

·???????TCF

There are other fund raising platforms in Pakistan that includes,?Edhi Foundation,?Chhipa Welfare, Aurat Foundation, Shahid Afridi Foundation, Ehsas, Khushal Pakistan, ShaukatKhanu Cancer Hospital,Fatimid Foundation and Fauji Foundation along with the Transparent Hands foundation. Door of awareness is also one of the platforms for crowd-funding.

It has been studied in paper ‘Need of a Localized Social Network Platform for Crowd funding in Pakistan’ that why crowd funding fails result are:?

Awareness among youth about crowd funding is very import. It increases the care of society among youth and other people. Since, Pakistan face dire challenges of Flood now and there have been other trouble too in different cities. Many people simply cannot beg in front of faces. Crowd funding that backed by solid reason and which can counter check could help millions. Social media platform should be well developed to address the need of crowd funding in Pakistan.?