The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced that it will promote the 'Our Neighborhood Crowdfunding Project' from the 10th until the budget runs out to help small business owners receive investments and loans from local residents, office workers, investors, etc.
'Our Neighborhood Crowdfunding' is a project that connects local residents, office workers, and investors who invest in promising small business owners in their neighborhood, and receive the corresponding profits in the form of 'cash profits and in-kind rewards (product coupons, discount coupons, etc.)', and supports small business owners with the costs required for funding and success incentives.
Through this, small business owners can secure the funds necessary for business operations while reducing their interest burden, effectively promote their products by utilizing rewards (product coupons, discount coupons, etc.), and create opportunities to communicate directly with customers.
The types of crowdfunding in our neighborhood are divided into ▲loan type ▲securities type ▲sponsorship type according to the method of fundraising and compensation. We plan to select and support a total of 1,550 companies, including 1,000 loan type companies, 100 securities type companies, and 450 sponsorship type companies, through 5 leading organizations.
▲The loan type collects investment funds from local residents, nearby office workers, etc., and pays out interest, in-kind rewards, etc. to investors. ▲The securities type collects investment funds from the general public, and pays out shares, dividends, etc. to investors. ▲The sponsorship type collects donations from the general public, and pays out the corresponding products or services (rewards) to sponsors.
Small business owners considering participating in our neighborhood crowdfunding can choose the appropriate funding type according to the characteristics of their business. Loan and securities types support business expansion through investment attraction, and sponsorship type provides opportunities for communication with customers. Through this, small business owners can secure necessary funds while gaining promotional effects and securing customers.
In addition to funding for individual small business owners, we also conduct 'commercial district-type neighborhood funding' in which small business owners in a certain area participate jointly. Commercial district-type neighborhood funding is a form of loan-type crowdfunding, and support is available when three or more small business owners in the same area apply together. Through this, participating small business owners can jointly raise funds, and at the same time, they can expect the effect of revitalizing the commercial district through cooperative marketing.
Lee Dae-geon, the Small Business Policy Officer, emphasized, “The neighborhood crowdfunding project allows small business owners to secure regular customers while securing funds by encouraging local residents to provide funding for their favorite restaurants and cafes,” and “We will continue to prepare customized funding support projects that reflect the characteristics of small business owners so that they can grow steadily.”
Detailed information on business applications can be found on the official website of the Small Business Market Promotion Agency or through Small Business 24 from the 10th.
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