Column by Craig Peterson, taken from Aycliffe Today Business
At the start of 2012 there were an estimated 4.8 million businesses in the UK.
Within this population, 99.2% (almost all) were small businesses. No wonder, then, that they are viewed as being the ‘lifeblood’ of our economy and the key to socio-economic recovery.
This business population is also proving to be highly-adaptive and innovative when it comes to entrepreneurial finance, and many are embracing the new opportunities created by online platforms and social media in relation to business funding.
This, coupled with a socially-motivated, social media savvy public, is creating what can only be described as a ‘boom’ in the Crowdfunding community.
Whether you are a service provider, social entrepreneur, angel investor, venture capitalist, or one of the millions of people ready to become a small-scale start-up financier, a new dawn approaches.
With estimates for annual Crowdfunding transactions reaching levels in excess of £300 billion for 2013, on the back of £1b and £2b for 2011 and 2012 respectively, I believe Crowdfunding will completely change the landscape for start-up and growth financing and the importance that SMEs will play in this cannot be underestimated.
Not having sufficient funds in place is a key factor in business failure rates and Crowdfunding can make a significant contribution to enhanced survival or growth potential.
GrowthFunders is a locally-based, online Crowdfunding platform that makes investing in start-ups and growth businesses simple and rewarding.
Via our online platform, it introduces investors and entrepreneurs to create mutually beneficial, tax-efficient opportunities while also enabling investors to spread or limit risk.
There are a multitude of benefits with ‘the power of the crowd’.
Carlton & Co. Director and GrowthFunders co-founder