The private sector will be able to access financing alternatives to banking through crowdfunding tools, under a bill approved by the Government Wednesday.

“By creating this legal framework for crowdfunding, we will be able to offer small entrepreneurs alternative sources of financing, and the general public new investment instruments. This will boost the development of a sector that has been rising in the West and which has long been expected in Moldova. Meanwhile, the government will continue to provide support through the Organization for Entrepreneurial Development, which has come up with many new programs lately”, said Prime Minister Natalia Gavrilița.

Participatory financing services aim to promote the sustainable development of SMEs by improving the legal and economic environment and ensuring and increasing the competitiveness and performance of small and medium-sized enterprises. It involves creating an attractive investment environment for SMEs, developing the economy through the growth of companies that, in turn, attract more investment, pay more taxes, create new jobs, which leads to an increase in the standard of living of the population.

Participatory financing or crowdfunding is a way of democratizing and expanding access to capital, thus facilitating the investment community in selecting the entrepreneurial sectors of the economy that require capital funds and that otherwise have limited access to traditional funding sources.