Bridging Financial Gaps by Empowering Communities through Crowd Profit Sharing
In this article, “Dutch Caribbean” refers to the former Dutch Antilles, particularly the Special Municipalities Bonaire, Sint Eustatius, and Saba (BES), and the constitutional countries Curaçao, Aruba, and Sint Maarten (CAS) within the Kingdom of the Netherlands.
The goal is to highlight challenges faced by local Dutch Caribbean small and medium-sized enterprises (SMEs) in securing financing from conventional financial institutions. It emphasizes Stichting Marlin Yard’s commitment to alternative financing methods, focusing on bridging financial gaps and promoting sustainable development in the region. Additionally, it aims to encourage potential like-minded partners, especially local governments and financial institutions, to collaborate for a positive impact on local businesses and communities.
What is Crowd Profit Sharing?
Crowd Profit Sharing is a financial model enabling individuals to collectively invest in and support sustainable projects, aiming for both positive impact and financial returns. It emphasizes collaboration, inclusivity, and shared benefits for investors and the initiatives they support.
Mission of Crowd Profit Sharing
The mission of Crowd Profit Sharing is to unite individuals in supporting impactful projects. By pooling funds, participants contribute to ventures promoting community, sustainability, and innovation. The mission includes financial inclusion, promoting transparency, and sharing in the success of sustainable initiatives. The model encourages entrepreneurship, aligns with SDGs (Sustainable Development Goals), and offers an alternative to traditional financing.
Is Crowd Profit Sharing Different from Crowdfunding?
Yes and no. While both raise funds from a group of individuals, their main differences lie in the nature of transactions and the returns contributors receive.
Purpose of Funding
- Crowdfunding: Contributors provide financial support for a project or business and typically receive non-financial rewards related to the project.
- Crowd Profit Sharing: Contributors not only provide funding but also share in the financial success of funded projects. It involves a profit-sharing model, where contributors become stakeholders and receive a portion of the profit generated by the supported projects.
Return on Investment
- Crowdfunding: Contributors to traditional crowdfunding campaigns receive non-financial rewards, such as the funded product, exclusive benefits, or recognitions.
- Crowd Profit Sharing: Contributors participate in profit-sharing. If the funded project generates profit, a portion of that profit is distributed among the contributors, allowing them to financially benefit from the success of the ventures they support.
Ownership and Participation
- Crowdfunding: Contributors typically do not acquire ownership or shares in the project or business they support. Their involvement is usually limited to the rewards associated with their contribution.
- Crowd Profit Sharing: Contributors become stakeholders in the projects and have a financial interest in their success. This model promotes a sense of joint ownership, aligning contributors’ interests with the profitability of the ventures.
In essence, while Crowdfunding focuses on supporting projects with non-financial rewards, Crowd Profit Sharing emphasizes financial participation, allowing contributors to share in the economic success of the ventures they finance.
Challenges for Dutch Caribbean SMEs
Financial institutions often impose strict criteria for SMEs to qualify for loans, posing a challenge for smaller businesses in the Kingdom of the Netherlands, especially in Dutch Caribbean. This challenge is exacerbated during natural disasters like hurricanes or a pandemic.
Political changes, such as the dissolution of the Dutch Antilles, have created more challenges for SMEs. After the constitutional status of the CAS countries and the formation of the BES in 2010, economic contraction occurred, driven by factors like political and economic uncertainty, lack of necessary reforms, and declining tax revenues. As a result, there is less or almost no financial support available from local governments for SMEs.
Tourism, while still a significant source of income, is unstable due to climate changes, emphasizing the need for diversification and adjustments in the sector.
The widespread use of property titles through generational wills, often used as collateral, is aptly described by the phrase “Property Rich but Cash Poor,” indicating that many are rich in assets but short on liquidity. Especially prevalent in the BES and CAS islands, where generations of landowners and property owners dominate the SME sector. Unfortunately, ownership does not meet the stringent requirements of conventional financial institutions, highlighting the need for alternative financial solutions better suited to the unique circumstances of individuals in the Caribbean.
Why Crowd Profit Sharing?
Market analyses focused on local SMEs in the Kingdom of the Netherlands revealed unique challenges and opportunities in obtaining financial resources. Additionally, there is a significant difference between entrepreneurial Netherlands and entrepreneurial Dutch Caribbean.
The major challenges for Dutch Caribbean SMEs include:
1. Rejection Policies: SMEs are more likely to be quickly rejected by conventional financial institutions adhering to Dutch standards that may not align with the local context of Dutch Caribbean.
2. High Thresholds: Conventional financial institutions set high thresholds and strict criteria, making it difficult for local entrepreneurs to obtain financing. Examples include local entrepreneurs facing extra challenges during the reconstruction of the Windward Islands after the devastating Category 5 Hurricane Irma in 2017 to date. Not to mention the rest of the Kingdom of the Netherlands due to the pandemic in 2020 to date.
A Symbolic Bridge to Unlock New Possibilities
Traditional financial institutions, while essential, may sometimes overlook certain niches and opportunities. Here is where Stichting Marlin Yard aims to act as a bridge to explore other possibilities beyond the ordinary, working with financial institutions. It is an exploration that goes beyond numbers and charts—a journey to the heart of local SMEs in Dutch Caribbean.
At Stichting Marlin Yard, we envision a financial landscape where collaboration merges with innovation—a landscape where local SMEs not only survive but thrive with unwavering support from forward-thinking financial institutions.
Why Choose Us as a Partner?
Financial institutions and local BES and CAS Governments are invited to engage in a conversation and consider collaboration, for at least five key reasons:
1. Contribution to Sustainable Development Goals (SDG): By collaborating with Stichting Marlin Yard, you directly contribute to the realization of SDG 17 – Partnership for the Goals. Together, we strive for inclusive and sustainable financing solutions that bring about positive change.
2. Diversify Impact: Collaborate with us to diversify the impact of financial initiatives. Together, we can provide support to local SMEs in ways that transcend traditional financial structures.
3. Stimulate Community Growth: Become a catalyst for community development. Your collaboration can empower entrepreneurs, promote sustainability, and strengthen economic resilience in the Dutch Caribbean region.
4. Embrace Financial Innovation: The financial landscape is evolving, and we stand at the forefront of that change. Embrace innovative approaches, including digitized methods, and position yourself as a pioneer in modern financial services.
5. Forge Strategic Alliances: Let’s form alliances that go beyond transactional relationships. Together, we can bridge gaps in access to financing, creating a vibrant economic ecosystem that benefits everyone.
Community Empowerment and Crowd Profit Sharing Initiative
Our aim is to promote active participation from community members, especially the Antillean diaspora of over 171,000 individuals. We want to encourage this group to be involved in ongoing developments on the island of origin, with the Crowd Profit Sharing concept cultivating a sense of ownership, collaboration, and mutual benefit. This also presents an opportunity for the Antillean diaspora to not only show support to family, friends, and colleagues but also gain returns—a win-win situation.
We are eager to boost your business with Crowd Profit Sharing. Experience the power of collaborative entrepreneurship because together you are stronger, especially in times of need!
If you are looking for a customized plan to accelerate your business’s success, we are here to assist with the “Entrepreneur Readiness Check.” Click [HERE].
Discover the power of impactful investing with Crowd Profit Sharing. Due to positively supporting the societal impact of projects, the platform offers transparency, engagement, impact diversification, access to innovative solutions, networking opportunities, long-term engagement, flexibility in investments, and the ability to influence decision-making processes. As an impact investor, you not only enjoy financial returns but actively contribute to positive changes in society. You play an active role in societal progress. Join us and let your investment make a difference!
Explore the Crowd Profit Sharing list, where SDG-related projects are presented, and where anyone, whether an Impact investor or entrepreneur, can collaborate to give a project the boost it needs, allowing all parties to share in the profits.
Everyone is invited, and the possibilities are enormous. Let’s embark on this journey together and redefine the future of financial collaboration. Contact us to explore how your institution can have a lasting impact, not only on the balance sheet but on the fabric of local businesses and communities.
Empower Dreams, Share Profits, Join the Movement with Crowd Profit Sharing!
Discover more opportunities at: Crowd Profit Sharing – Stichting Marlin Yard