Crowdfunding is the latest iteration of fundraising. Essentially, people harness the power of the Internet to raise money for projects, which are usually smaller-scale and often aim at reimbursing the donor. Jamaica’s JN Foundation and the Jamaica National Small Business Trust has just launched a crowdfunding program called I Support Jamaica. It is intended to target the wealth of the Jamaican diaspora, as well as any other individuals who want to help.

I was invited last Saturday to a Blogger’s Brunch, where a group of us heard about this project. It is easy, with this type of thing, to get lost in jargon and technicalities. But to explain it in simple terms, people visit http://www.isupportjamaica.com, find a project that speaks to them and either donate money via the web site to a not-for profit project or provide a loan to a micro-enterprise. The potential beneficiaries have a limited period of time to raise the funds, and if they do not succeed, they return what they did manage to raise to the donors.

“This project allows people to get involved from all over the world,” said JN’s Saffrey Brown. “This is a way of really opening up resources for groups and individuals,” she added.

For example, Alpha Boys School is currently seeking US$4,700 for two Mac computers and two copies of Adobe to teach the boys the marketable skill of graphic design. (Alpha is a residential school for at-risk boys between the ages of 9 and 18).

Crowdfunding is still in its early days, but it is promising in that individuals, both donors and beneficiaries, can be empowered with relatively minimal action and funds. And these minimal actions can have a real impact on people’s lives. It seems especially suited for Jamaica, as there are so many hard-working, passionate and innovative people. They are up early, before the sun, with pushcarts laden with fruit, or tending to their bees, or molding pottery. They often just need a small burst of funding to take their business to the next level.

In my work with YOU, I have heard this story many times (and written some about it here), either from people seeking funding based on a business plan to expand their business, or from people who have done it already and want to grow beyond the borders of their neighourhood. Bank loans are possible, but hard to come by, so crowdfunding seems like a hopeful option for these entrepreneurs.

Watch this video about Baldie’s Lumber Yard that illustrates this situation perfectly:

And these videos from JN:

Here’s a little more about the project from JN’s web site:

I SUPPORT JAMAICA is a project which seeks to provide an easy and creative way for Jamaicans in the Diaspora and elsewhere and friends of Jamaica to provide financial support to projects, both microenterprise and nonprofit, that the JN Small Business Loans Ltd. consider worthy and reliable.

Jamaicans are known for their indomitable spirit in business, sports, music and any other area they choose to become involved in. As Benjamin Disraeli said, “The secret of success in life is for a man to be ready for his opportunity when it comes.” Unfortunately, this opportunity tends to hinge on the catalyst of money, and thousands of small entrepreneurs are unable to realize their true business potential because of their inability to access financing from traditional sources. The inherent perceived risk and the lack of adequate collateral are cited as the primary causes for this problem.

In an attempt to provide a tourniquet for this inherent business practice problem, I SUPPORT’s mission is to deliver innovative and accessible credit in a timely and profitable manner to micro and small entrepreneurs in Jamaica who have limited access to loans from traditional banking sources. The objectives of this project are to assist micro entrepreneurs to increase their income and improve the quality of their lives, create new jobs and to support the development of the Jamaican micro enterprise sector.

I SUPPORT also provides a platform for anyone who wishes to donate money to non-profits in Jamaica.