Conceptual Model of Community-based Financial Participation for Business Development

Financial Participation for Business Development

Abstract

No new business can function without capital; therefore financial need is
essential for business development. Most businesses use different real
assets (Issue of financial securities) and loans to finance their
operations, which have pushed many businesses to suffer from liability
capital (loan, due to financial pyramid of debt) or experience trouble
working with liability capital. These are some of the reasons for the low
level of business development. This paper presents a conceptual model of
Community-based Financial Participation (CFP) for business
development as a contribution for solving capital needs at the
community-based level, which is an extension of the issue of employee
stock ownership and sharing in profit of their enterprises at the
community level. Some specific features of CFP are discussed in detail.