To start any new business of their own, people back step for one main reason “funds”. In spite of having a very clear picture on what business to start, people being naive have their concerns towards how to start. One such solution for this problem is “Crowdfunding”. This method helps in raising the funds for the new businesses being started by gathering small amount of funds from large group of people over the internet (Turban, Volonino & Wood, 2013). At the start, crowdfunding have been used by charities to raise money. As main challenge in starting a new business is “Finance”, crowdfunding is used in diverse. For every small or new business being started getting loan from the bank is undoubtedly not easy. Under such situations rose to crowdfunding started. A good example of crowdfunding is Kickstarter.
“Kickstarter is the world’s largest crowdfunding site for creative projects”. The individuals or group of people who are willing to start a new project should upload his/her video which actually explains the overall objective, the content and the funding required for the project (Turban, Volonino & Wood, 2013). Thereby, the crowd (visitors) decides if the projects are really worth in their investments. Hence, it can be treated as a social commerce. Investors receive additional benefits like T-shirts, tickets to a concert. Also, when an investor invests some amount on the project and when the deadline is met, they check if the needed amount is reached or not. If the targeted amount is not reached, all the contributions are returned to the investors, if target amount is met then the project is ready to go and amount is credited to the project creator. Crowdfunding is growing fast in areas such as charity, music, games and many ot...
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...egies are implemented by independent filmmakers to obtain the required funds. Here the investors are rewarded by receiving gifts such as tickets for the premium screening or DVDs of the final movie. The funds collected using crowdfunding could be sufficient for pre-production process or to promote a movie and hence became a part of financial source even in movie making (Braet, Spek & Pauwels, 2013).
To conclude, crowdfunding is an internet-based method where in small amounts are collected from large crowd for a cause. It supports various fields such as music; arts etc., however in fields such as film making the crowdfunding can help only a part of the funding as this field involves a lot of finance. In today’s world crowdfunding is having a greater demand and is helpful for the individuals who are willing to create a project or new business by contributing funds.
...se enough money during a certain period of time the inventors get start their proposed project.
In the earlier days, if we want to start the new project, we could collect the money by either taking loan from bank or lending money from family/friends. These are the only option we could start the new project/venture. “Due to global banking crisis, most of the banks in U.K were completely shut-down and some were getting down. That led to obtain funding for new business was impossible. Then crowd funding had come to picture to get their businesses off the ground”. (Coffer, David, 2013).
Venture capitalists play an important role in screening, contracting with and monitoring small businesses, which leads to reduced information opacity as the venture capitalists collect information about the business, its potential markets, collateral and management team of small business. It is due to this reason, that if an entrepreneur is rejected by a venture capitalist, his ability to seek alternative sources of finance is affected.
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
This article emphasizes on what is crow funding? Who is a creative person? Who are called investors? This also explains about Jumpstart our Business Act and requirements proposed by Securities and Exchange Commissions. It also emphasizes on benefits, weakness, threats about crowd funding and brief explanation about social crowd funding and crowd funding in Europe.
Project initiator, also known as creator or founder, is a term for anyone that utilizes crowdfunding practices to funding their concepts, ideas, project or venture (Wechsler, 2013). This project initiator can be individual, organization, small medium business (SME), students, event organizers, entrepreneurs, musicians, filmmakers, designers, inventor, non-profit organization, politician, artists, writers, philanthropists and the crowdfunding platforms themselves. It could be anyone with an idea or concept and need funding to realize their project.
A major film production, for instance, involves the use of “elaborate cameras, lighting equipment, multitrack, sound-mixing studios, sophisticated laboratories, and computer generated special effects.” (2013:9) Furthermore, it is due to the extensive use of technology in filmmaking that it has adapted to include aspects of business. Companies may manufacture equipment, provide funding towards the film or alternatively may be involved in the distribution process of the film, in which the film enters theatres and other venues where the final product is presented to audiences. Moreover, it can be deduced that technology and financing is therefore essential to
Entrepreneurs usually require financial assistance to launch their ventures from formal bank loan or money from a savings account. The women entrepreneurs are suffering from inadequate financial resources and working capital. The women entrepreneurs are lack to access external funds due to their inability to provide tangible security. Very few women have the tangible property in hand.
to put a film out. The money that it takes to cover the cost to make a film, not only comes from
Oddly enough, Focus Features and Focus Features World Wide, which for the purposes of this analysis will be lumped together, remains one of the few art house/independent movie studios that is owned by one of the major six studios. Ironically, this distinction also lends Focus Features a distinct advantage. Typically, the independent film industry requires a studio to distribute/produce a certain number of projects in order to fund initial overhead or licensing costs. This puts a significant financial strain on the smaller market firms and increases risks. While, the project quota remains true for Focus, it is by choice and not by financial necessity. Focus is able to utilize its parent company, Universal’s wide reaching distributive and marketing scope, making Focus’ project performance less variable while fixed costs remain low. However, this corporate structure poses obstacles as well. Independent film studios put a considerable amount of resources into finding or developing content of acceptable quality. This never ending hunt must be balanced against stringent financial targets imposed by Universal. Seemingly, these do not mesh, but due to Focus’ business model, which takes a calculated approach to releases and relies heavily on festivals to generate buzz. By releasing movies in only a moderate number of theaters first, it allows Focus to use their budget for marketing more effectively. Surprisingly, Focus is able to operate almost completely separately from Universal relying on its growing library sales, and international distribution rights to cover its annual operating expenses, including overhead, development, production, acquisition, marketing and distribution costs. More specifically, Focus’ international sales “arm” gi...
In modern world, small and medium entrepreneurs often find it hard to finance their ventures. People with innovative business plans and products often struggle to finance the required investment to start a business. The idea of “Business Angel” is a few people who have surplus money and knowledge, invest money in new small and medium enterprises to help them to start a business. “Crowdfunding” is a new concept and more similar to “Business Angel” except the fact that in crowd funding donations are collected from a large numbers of individual donors for a cause or for the startup of a business or for charity works. Crowdfunding became popular when a musician from Boston, USA launched “Artistshare” in 2003 to finance the production costs of the Music albums that will only be sold over the Internet. Since then many Internet based platforms were established to help the entrepreneurs or people to collect donations from individual donors for their cause or business or for social causes (Schwienbacher & Larralde, 2010).
Before 1980 the only way to find the investment for any startups was banks and in 1980's there were investors who were interested in technology business. In this 20th century, small and mid-sized enterprises (SMEs) have a low income and are not easy to get capital or financing from any financial institutions or bankers, but startups have an option to find their investments through a strategy called Crowdfunding, a venture to raise money from various people. This review infers the content on influence of crowdfunding in small and mid-sized enterprises (SMEs). This review emphasis on how crowdfunding is growing in SMEs, what are advantages and disadvantages of crowdfunding and a case study on how a company from Indonesia raised their money using crowdfunding.
...in many ways to maximize the success factors (Isenberg, 2012). Crowdfunding platforms should list an advice or frequently asked question (FAQ) on how to create project pitches, create images and videos and how to choose donation categories. They also need to put algorithms search that can automatically analyze pitches in terms of word count, sentiment and readability to attract more crowd. Crowdfunding platform continuously growth and attract the investors and cut the intermediaries by eliminating service providers’ activities previously involved in the network. The platforms have used crowdfunding to find stakes from private investors who own high capital and match them with people who own the ideas. Crowdfunding become threat to bank and conventional loan system, due to creative individual and small medium industry (SMI) prefer take their chance to this platform.
The field of young entrepreneurs looking to create their own success in the business world is rife with digital and app based start-ups. In fact, if you were to sit down 100 business students and asked them what their big business idea was, odds are plenty of them would take the form of a digitally based product. There is no doubt that success can be found in such realm, history tells us that, but many young entrepreneurs are finding that there is still plenty of life in so-called ‘traditional sectors’.
Starting a small business is often one of the hardest things a person can do. Some people start a business out of pure fascination, or even as a hobby. Whether starting a business for personal reasons or simply the grandeur to make loads of money, everybody needs to have a plan. Starting a small business is no easy task and can take days if not months to prepare. The most important aspect to have is the tempura and heart to start a small business, as without passion, no business can succeed. One has to be his or her own boss, make dream, reality and be willing to market and sell a product. It takes a lot of discipline, long hours and hard work, something many do not have. However with the right willingness, passion and dedication a business can be the start of something big.