APPLICATION OF CROWDFUNDING AS AN ALTERNATIVE SOURCE OF PROJECT FINANCING IN EU COUNTRIES - ASSUMPTIONS OF ITS DEVELOPMENT IN BOSNIA AND HERZEGOVINA AND CROATIA

Abstract

A new economic trend in the financing of projects, start-ups, innovative projects and many other projects from various fields (music, film, games) is widespread today and its called crowdfunding or group financing. With the development of new technologies, and thus social networks around the world, it creates the possibility and potential advantage of associating around the world in raising funds in an alternative way. Crowdfunding can be organized in several forms or models. The basic division is the one that is carried out by the European Commission: Reward-based crowdfunding, Donation-based crowdfunding, Share-based crowdfunding and Investment-based crowdfunding. The crowdfunding market is constantly growing. As conditions for traditional funding become more stringent, crowdfunding could be a potential key to success. Prospects for the development of crowdfunding in Bosnia and Herzegovina and Croatia are reflected in the legal regulation of this method of financing, which would facilitate administrative work, reduce handling costs and create legal certainty. Following the established regulations, intensive attention should be dedicated to the promotion of crowdfunding and "raising awareness" of citizens, pointing out the possible benefits and advantages that it offers. This will take some time, so that in the foreseeable future, alternative financing of crowdfunding will

gain in importance in Bosnia and Herzegovina and Croatia.