CROWDfunding to mainSTREAM innovation

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A major challenge for the sustainable economic & social development in the Danube region is the difficulty in accessing finance for small & micro enterprises. Availability of bank loans for SMEs & spin-offs & social enterprises has since the beginning of the fin. crises declined by more than 25%, while collateral requirements have increased by 34%. SMEs still contribute more than half of total value added in non-financial economy & provided 80% of all new jobs. Lack of finance for small enterprises continues to have a negative impact on the innovative economy & the job market. Banks or public guarantee funds cannot solve this challenge. Current regulations such as Basel IV make it impossible for banks to finance risky innovative businesses. Even the EC identified this as a European Challenge and answers with strategies on alternative financing. Thus, EUSDR Priority Axis coordinators nominated in April 2016 CrowdStream as a strategic project to address the challenges highlighted under PA 8 COMPETITIVENESS OF ENTERPRISES & PA 10 STEP UP INSTITUTIONAL CAPACITY. CrowdStream`s main objective is to improve the effectiveness of public/private business-support for innovative spin-offs & social enterprises to access qualitative alternative financing (crowdfunding). The CrowdStream project will initiate a change in the financing market. Due to quality labelling and capacity building activities there will be a major shift from donation based to equity based crowdfunding. The main project result will be: Improved cooperation between business-support-organisations and enterprises to guarantee a qualitative access to crowdfunding. Outputs: Training: - Trainings for public actors providing services for enterprises approaching crowdfunding (CF); - trainings for businesses on crowdfunding; Tools: - transn. quality label for CF. Pilot Action: - pilot actions on campaigns for CF. Strategies: - Transnational & Regional APs to improve access to alternative finance for enterprises.

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