Design of shariah agriculture crowdfunding business model using business model canvas

Abstract

Abstract. Many farmers have problems of lacking access for funding because they are categorized as un-bankable. While demand for food keeps increasing, the demand for funding in agriculture sector keeps increasing, too. Considering that the majority of Indonesian farmers are Moslems, PT. XYZ as a new startup recognizes an opportunity to develop an Islamic crowdfunding platform with aqd mudarabah muqayyadah as an alternative to conventional financing for farmers, thus making financing in agriculture more accessible for them by utilizing the power of digital technology while complying to sharia law. A business model design for this financial product is necessary to enable the company to create, deliver, and capture value for the customers, which are the funders and farmers. This research aims to develop a business model for PT. XYZ agriculture crowdfunding platform using Business Model Canvas. The value proposition for the funder side is providing a secure social investment platform for agriculture which compliant to shariah rules, while value proposition for the farmer side is to raise and empower farmers. Both value propositions are linked using a shariah agriculture crowdfunding platform. The other aspect that needs to be highlighted in this business model is risk mitigation.

Keywords: Business Model, Business Model Canvas; Agriculture; Islamic Financing; financial technology; Mudarabah Muqayyadah;