A New Microfinance Concept for Entrepreneurs

Many people dream of entrepreneurship. But the chance to own one's own business remains a dream for those who can't find investors or financing through a private lender. Unfortunately, that's all too common these days - with most of the world still coming out of recession mode, potential owners must seek out other ways to fund their start-ups.

Crowdfunding is new term that refers to an age-old idea: have your community or network of acquaintances fund your business idea. Instead of submitting your plan to save the planet to a financial institution, join a crowdfunding online community. Here's how it works:

Crowdfunding communities allow you to post a project (a business start-up idea, a product, or service). If the network of members "like" your idea, they will donate funds to help you get the project off the ground - all without interest or collateral. Around $80 million has been channeled through crowdfunding websites to enable entrepreneurs to fulfill their dreams.

So you've got a great new idea for a new wind mill generator? Here's how you can leverage crowdfunding, step-by-step.

1. Find a crowdfunding website to join. A simple Google search will reveal a number of them, but do your research. Not all websites are created equal - think of it like shopping for stock-holders.

2. Post your project. Make the description as eloquent and appealing as possible. Let the passion you have for the idea be clearly communicated in your posting.

3. Sit back and let potential funders find you.

Have you successfully funded the start-up of a business through crowdfunding? Do you have tips or suggestions on how to best go about it? Share your thoughts by commenting below.

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