The Development of Islamic Crowdfunding in Indonesia and Its Impact towards SMEs

Abstract

Small and Medium Enterprises (SMEs) is taking role as the backbone for sustained economic growth, particularly in developing countries. However, SMEs might not easily get the financing from the banking institution due to the lack of financial history and collateral. Islamic crowdfunding has become a solution to deliver accessible financial services to the unbanked SMEs in the countries, especially in Indonesia. Islamic crowdfunding impacts the SMEs in regard to the ease of obtaining capital access, improving the welfare of SMEs, and creating growth for the national economy in the long-term. By using literature review, this study aims to show how the Islamic crowdfunding develops and how it affects the SMEs in Indonesia. The result shows that Islamic crowdfunding potentially benefits the SMEs in capital access, improving the welfare and economic growth.

The Role of Equity Crowdfunding Business Model in Improving Employee Welfare Based on Maqashid Shari'ah Perspective: Case Study of SMEs listed in Santara Platform

“…Beier et al (Beier et al, 2019) stated in the results of their analysis that the involvement of SMEs in equity crowdfunding can be a promising marketing tool and increase the sustainability of SMEs. Some of these studies show the important role of equity crowdfunding for SMEs (Mustafida et al, 2021).…”

Exploring Success Factors in Indonesian Equity Crowdfunding

“…However, the development of ECF in Indonesia is still considered as infancy. Previous studies related to equity crowdfunding in Indonesia mainly discussed regulations in Indonesia (Chang, 2018;Harianto, 2020), Islamic equity crowdfunding in Indonesia (Hendratmi et al, 2019;Mustafida et al, 2021;Thaker et al, 2020), and ECF as an alternative for financing in general (Hutomo, 2019;Widawati et al, 2021).…”