Why More and More Pakistani Business Owners are Turning to Crowdfunding
Pakistani Businesses are Turning to Crowdfunding
Funding projects in Pakistan is one of the greatest obstacles young businesses have in the country. From startups to expansions, the story is the same. Bedeviled by political and ethno-religious strife, both within and among her neighbors, the economy of the country pays the ultimate price by suffering a stunted growth.
Unlike in the United States where fundraising is mostly resorted to, the same technique will fail woefully in Pakistani and the reason is not far from poverty. As a result of this, micro-entrepreneurs and budding businesses die off after a few years of struggling or remain stunted all their life. Crowdfunding delivers a ray of hope for such businesses.
Since the advent of Crowdfunding in Pakistan, business owners have been given a reason to smile. The number of crowdfunding sites has grown over the years. What these sites do basically is creating a platform for you to place your projects. Each project is screened and on approval, they are made public for people who buy into your idea to make pledges. Once your target is reached, the funds are released to you through Bank Wire, Telenor Easypaisa and Credit or Debit Cards.
Seed Out was actually the first Pakistan crowdfunding site and has been connecting Pakistani business owners and students to required funding for the past few years.
There are various ways Pakistani small business owners can hope to receive their desired funding. idea. If their business is a duplication of what is already in existence, it may be harder to get a decent donation. Even when the business is not a new one, always emphasize on what can be done differently from what is already out there. Another strong point is to make the project proposal as detailed as possible – every dime in each proposal should be justified.
Though some crowdfunding organizations will claim to offer free online fund raising, do not be surprised if some percentage is deducted from your realized funds (they need these deductions to maintain their websites and cover other costs). The poverty in Pakistan has made it very difficult to raise money for projects but crowdfunding sort of beats the barriers.
It is always good to have something tangible on ground to serve as a proof that you are not sourcing the funds to squander and that is why crowdfunding campaigns for extension/expansion usually receives more attention than those for startups.
One thought you need to dispel from your mind when you start a crowdfunding campaign is that you will get all the funds you desire in a day or two. That may never happen. Therefore, the best you can do for yourself is to be patient and stay optimistic. Having the above mindset may just lead to frustration.
You can increase your chances of getting responses if you utilize the power of social media. If you are active on any of the social media, nothing stops you from sharing the link to your campaign and pleading with your friends for support. All in all, the effort and reward of crowdfunding always outweighs that of traditional funding. Little wonder why more business owners in Pakistan are turning to it.