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A Framework for European Crowdfunding

The 2008 financial crisis crippled the global economy. For Europe, the recovery has been tenuous, witnessing the lack of confidence in the sustainability of individual nations, and dwindling trust in the financial services and banking industry.

While the strategy for economic recovery has focused on fiscal policy and the banking system, the brunt of the financial burden is placed on small businesses and entrepreneurs. These groups are left without funding for their businesses, without the security of a bank loan, and without access to credit lines from the financial services industry. To contextualise the gravity of this problem - 23 million small and medium sized enterprises (SMEs) in Europe represent 99% of businesses. Thus, access to capital for SMEs is critical for sparking job creation in Europe.

Today one of the most promising tools to help enable economic growth, job creation, and innovation is crowdfunding. It is believed that crowdfunding is one of the most viable means of funding new ideas, small business and job creation across Europe. It is a highly democratic tool that is posed to have a disruptive impact on community, start-up and consumer finance by allowing value creation on many levels, not just financial.

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