Reference no: EM133148364

IS CROWD FUNDING AN ETHICAL WAY TO START A BUSINESS

CROWDFUNDING is now a much used way for small business or start ups to raise money in exchange for equity, rewards, or nothing at all know as donation crowdfunding.

As a novel fundraising method, crowdfunding is radically different from the alternatives to finance a new business. Understanding various elements and characteristics of crowdfunding is necessary.

1. There is not much financial risk.

2. Your campaign could go viral.

3. A successful campaign validates your business idea.

4. You keep all of your equity.

5. It will cost you time and money.

6. Your campaign might not succeed.

7. Someone could step your idea.

8. You have to pay several fees.

9. It does not work for al businesses.

cccraise some ethical concerns, such as exposure to fraudulent business practices and abuse of the raised funding, Share your thoughts about crowdfunding to start a small business as an alternative to funding by banks and other lenders.