Amaravathi development through Crowd-funding
Nearly three years after the Chief Minister of Andhra Pradesh said his government was planing to develop its capital city of Amaravathi through crowd-funding, N Chandrababu Naidu has again mooted the idea at meet on Thursday.
Nearly three years after the Chief Minister of Andhra Pradesh said his government was planing to develop its capital city of Amaravathi through crowd-funding, N Chandrababu Naidu has again mooted the idea at meet on Thursday. He called upon all the section of people to contribute money give money to take up development of the capital and the state as well. His Finance Minister Yanamala Ramakrishnudu also batted for the idea and disclosed that the government mulling over setting up a corporation to reach out to the people to collect funds construction of the capital city.
He even offered to pay higher interest than the banks. Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to Internet-mediated registries.
This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform") that brings the parties together to launch the idea. Crowdfunding has been used to fund a wide range of for-profit entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, or community-oriented social entrepreneurship projects.
Some requests, such as those to pay for optional expenses such as vacations, weddings, or cosmetic surgery, are widely derided as internet begging or cyberbegging, according to a Wikipedia article. Crowdfunding can offer a lot for a micro-SME, but it isn’t for everyone. If the target amount isn’t reached, potential investors get their money back and the business goes away empty handed. "…crowdfunding is not the answer.
In fact, when it comes to supporting the public good, crowdfunding will only make matters worse. Once we start privatizing what was once squarely public, governments will all too eagerly push those expenses off their ledgers. The effect snowballs, and crowdfunding becomes an excuse to leave more and more basic services up to the crowd," cautions Peter Moskowitz at www.wired.com. Readers may find it interesting to read, "How to Use Crowd-Funding Sites to Raise Money for Your Non-Profit" at http://www.thefundraisingauthority.com.