Muhammad Rahatullah Khan* and Jannah M. Baarmah
Entrepreneurship Department, Effat University, Kilometer 2 - Old Makkah Road, P.O. Box 34689, Jeddah 21478, Saudi Arabia
Purpose: No one knows more about a creative and innovative project than its architect and owner of the idea. The funding helps the start-up start the project with minimal stress. Commonly startups are compelled to pay interest, equity/shareholding, be at the mercy of institutions or wealthy investors for ﬁnancial resources. They also at times face massive difﬁculties of the bureaucratic and banking restrictions and delays. Therefore, the purpose of this research was to develop an understanding of the scholarly community on alternative sources of funding that is, crowdfunding and its dynamics. On the basis of this paper develops a case for the crowdfunding platforms mushrooming in Saudi Arabia.
Design/methodology/approach: The paper is applied conceptual in nature and beneﬁts from secondary sources of research.
Research limitations/implications: The data available on Saudi Arabia is limited and the entrepreneurship stakeholders are now getting abreast of the idea and welcoming it.
Practical implications: The platform(s) will serve mass number of start-ups in both the ‘for proﬁt’ and ‘not for proﬁt’ start-ups in Saudi Arabia. It will ease the process of fund raising and provide a foundation for the future growth and diversity in crowd funding activity.
Originality/value: This paper developing on the literature on different sources of ﬁnance available for the startups builds a case for the crowdfunding platforms in Saudi Arabia that serve middle east in general and Saudi needs in particular. It is established that different types of platforms are required for a number of business types and services.
Keywords: Crowdfunding; Saudi Arabia; Sources of ﬁnance; Start-up; Entrepreneurship.
Reference to this paper should be made as follows: Muhammad Rahatullah Khan* and Jannah M. Baarmah (2017) ‘Building a case for crowdfunding platforms in Saudi Arabia’, Middle East Journal of Entrepreneurship, Leadership and Sustainable Development, Vol. 1, No. 1, pp.43-60.