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Macroeconomic trade-offs

Crowdfunding

A solution to the financing problem?

For an economy to work effectively there needs to be an efficient financial system. In recent years crowdfunding has increasingly been used as a means of raising finance. Tim Watts looks at how this works

Answers to the questions in this article are provided online at www.hoddereducation.co.uk/economicreviewextras

The flow of funds around an economy is vital to innovation and growth.There have always been funding gaps that potentially restrict economic prosperity. A funding gap arises when an individual or organisation does not have sufficient resources available to enable them to meet their objectives. For example, an individual wanting to set up a business or launch a new product may not have all the funds required. Or, a company may lack the capital needed to invest in a new manufacturing facility to expand their business.

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Macroeconomic trade-offs

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