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Abstract

A growing body of research from around the world shows that well developed and inclusive financial systems are associated with faster growth and better income distribution. Micro finance offers optimal solutions for extending reach of financial inclusion and these services are made available at low cost. More and more institutions are taking up microfinance to uplift the poor and the marginalized. Crowd funding is the financing of a project or a venture by a group of individuals instead of professional parties. Micro finance and crowd funding have developed in the same financial space and time but they are exclusive of each other except for a few things. The study provides a theoretical review of these two forms of financing and tries to identify whether they are related and do they promote entrepreneurship.

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