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Recruitment of Small Business Owners to Participate in Uri Dongnae Crowd Funding

The Ministry of SMEs and Startups announced that starting from the 10th until the budget is exhausted, it will promote the ‘Uri Dongnae Crowd Funding Project’ to help small business owners receive investments and loans from local residents, office workers, investors, and others.

‘Uri Dongnae Crowd Funding’ is a project that connects local residents, office workers, and investors with promising small business owners in their neighborhood, allowing them to receive returns in the form of cash profits and in-kind rewards (such as product coupons and discount vouchers). It supports small business owners with the costs needed for funding and success incentives. Through this, small business owners can secure the funds necessary for business operations while reducing interest burdens, and use rewards to effectively promote their products and create opportunities to communicate directly with customers.

The types of Uri Dongnae Crowd Funding are classified into loan-type, securities-type, and sponsorship-type according to the method of fundraising and compensation. Through five managing institutions, a total of about 1,550 companies will be selected and supported, including 1,000 loan-type, 100 securities-type, and 450 sponsorship-type companies. The loan-type raises investment funds from local residents and nearby office workers and pays interest and in-kind rewards to investors. The securities-type raises investment funds from the general public and pays investors shares and dividends. The sponsorship-type raises sponsorship funds from the general public and provides sponsors with the corresponding products or services.

Small business owners considering participation in Uri Dongnae Crowd Funding can choose the appropriate funding type according to the characteristics of their business. Loan-type and securities-type support business expansion through investment attraction, while sponsorship-type provides opportunities for communication with customers. Through this, small business owners can raise the necessary funds while gaining promotional effects and securing customers.

In addition to funding for individual small business owners, a ‘Commercial District-type Neighborhood Funding’ in which small business owners within a certain area jointly participate will also be conducted. Commercial District-type Neighborhood Funding is a form of loan-type crowdfunding that supports applications when three or more small business owners in the same area apply together. Through this, participating small business owners can jointly raise funds and expect the effect of revitalizing the commercial district through cooperative marketing.

Lee Dae-geon, Director of Small Business Policy, said, “The Uri Dongnae Crowd Funding project encourages neighborhood residents to fund their favorite local restaurants and cafes, allowing small business owners to enjoy both funding and securing loyal customers,” adding, “We will continue to prepare customized funding support projects reflecting the characteristics of small business owners so that they can grow stably.”