Financing models with the participation of citizens offer small and medium-sized enterprises (SMEs) alternative sources of financing beyond banks as well as marketing opportunities. Private investors can thus directly support the development of a more sustainable food system. Such models are characterised by close relationships between investors and the SMEs. Forms of proximity between SMEs and their potential investors are important success factors on the one hand, and a desired outcome of these financing models on the other. The article shows which dimensions of proximity are particularly important to SMEs and how two approaches to civic financing can be distinguished.
The journal article is based on results of the collaborative project "BioFinanz - Alternative forms of financing along the value chain for organic food" (2017-2020), which was carried out jointly by the IfLS and the Eberswalde University of Applied Sciences (HNEE) [link in german]. The project was funded by the Federal Ministry of Food and Agriculture (BMEL) based on a resolution of the German Bundestag.
The article is available here.
Contact persons at IfLS: Simone Sterly (sterly[at]ifls.de), Sarah Peter (peter[at]ifls.de)
