Use of Crowdfunding for Developing Social Enterprises: An Islamic Approach

Abstract

Crowd-funding is an open call to mass people through the internet for fund in the form of financial donation, lending, or in any other forms such as in exchange for a future product, service, or reward. The concept is relatively new but growing at a very high rate around the world. Companies are using it mostly for efficiency ground. This study is based on the argument that conventional crowd-funding models cannot be applicable exactly in the Islamic societies due to philosophical ground. In this paper, we have discussed crowd-funding models from Islamic perspectives for funding projects of social enterprise/social business in the Muslim societies with a view to ensure social equity and justice by removing many social problems like unemployment and poverty.