Few people have faith in crowdfunding, but the problem is that many people ignore crowdfunding as a way to progress and support innovation, even ignoring the potential of crowdfunding for global development.

You do not have to be a genius to realize the benefits that collective financing can bring. You just have to remember that this is a way of financing small businesses that will eventually give jobs and some benefit to the community they work for.

We are currently facing a digital revolution, in which anyone can have access to the Internet. In fact, according to the nations, a third of the population has the facility to use the Internet and 85% of the world population can have a mobile phone.

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What does this mean for crowdfunding? That anyone with internet access can make their idea known and finance through the netizens.

How crowdfunding impacts global development

The best thing about this connectivity is that it is on the rise, so young people who project their ideas on crowdfunding platforms also increase.

The attractiveness of collective financing is the democratization of funds in which any person can donate just as anyone can publish a project. According to a World Bank report, this strategy can be very useful in developing countries since it proposes an alternative to conventional financial institutions, at the same time, it promotes innovation and entrepreneurship.

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The same report adds that the use of technology with this type of platforms makes it more to get angel investors interested in investing in various projects, streamlining the processes of capital collection.

In fact, the figures indicate that there are up to 344 million investors in developing countries capable of making small investments in collective funds for community companies. These investors generate at least $ 10,000 annually and together they have the ability to implement at least $ 96 million by the year 2025.

This means that crowdfunding has generated a multi-million dollar market and everything for small businesses can arise. Collective financing works to give support to those entrepreneurs who can not resort to risk capital or a credit. This strategy to support the growth of new companies supports global stability as it generates jobs and supports local talents. That’s where the potential of crowdfunding for global development comes from.

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Crowdfunding promotes the creation of companies