{"id":3722,"date":"2021-11-05T08:52:26","date_gmt":"2021-11-05T08:52:26","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=3722"},"modified":"2023-01-09T03:37:58","modified_gmt":"2023-01-09T03:37:58","slug":"pros-cons-equity-crowdfunding","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/pros-cons-equity-crowdfunding\/","title":{"rendered":"The Pros and Cons of Equity Crowdfunding for Your Business"},"content":{"rendered":"\n

Equity crowdfunding is an alternative to financing businesses compared to the traditional route via banks and venture capitalists.<\/em><\/p>\n\n\n\n

Though banks are traditionally the main source of financing for small and medium-sized enterprises (SMEs), on average, many SMEs face great difficulties in obtaining loans and other forms of financial assistance due to an extensive list of prerequisites. This is why they may resort to alternative forms of financing such as equity crowdfunding<\/a> instead. In this article, we take a look at the pros and cons of equity crowdfunding for your business. <\/p>\n\n\n\n

The definition of an SME ranges from someone who sells from a shopping cart to someone with a small store, with each country offering different definitions of the terms. In Malaysia, the largest small and medium-sized companies are in the manufacturing sector and have more than 150 employees, while in the agriculture and services sectors, SMEs only have 50 employees, for instance. <\/p>\n\n\n\n

Related: Malaysia\u2019s Equity Crowdfunding: The 4 Players<\/a><\/p>\n\n\n\n

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Table of Contents<\/p>\n