EXPLORING THE POTENTIALS OF CROWD-FUNDING AS A NEW SOURCE OF FINANCE IN SAUDI ARABIA

Abstract

This work discusses the concept of the evolution of crowd funding and how suitable and feasible would crowd funding be in Saudi Arabia. Moreover, it analysis the strength, weakness, opportunities and threats of crowd funding comparing to other sources of finance for small and medium enterprise. This is done through a survey with 30 entrepreneurs who are in the process of startup as well as conducted interview with Professor in the Field of economics and management regarding this topic. The result of this research shows that there are Potentials of crowd funding to flourish in Saudi Arabia in the near future, but the lack of knowledge of the idea of crowd funding is limiting it from happening. However, still other sources of finance are demanded. Crowd funding is a complementary tool to other financial sources. This is mentioned in details under the section of findings.