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Organisations and the financial system
Organisations and the financial system

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2 Alternative funding sources for Small and Medium Enterprises

Some business organisations can find it difficult to raise funds through the approaches described so far. As you have seen, the constraints related to the different sources of finance can be quite harsh, especially for a newly established business. However, alternative methods of raising finance have emerged in recent decades. Although these methods can be traced to their embryonic forms in previous centuries, they can be shown to have developed in response to the Great Financial Crisis in 2007/08 with the aim of overcoming the obstacles presented by the sources of funding discussed so far. Equally, advances in modern technology, particularly the internet, mean alternative types of finance are commonplace in today’s economic landscape.