Development of Crowdfunding SME Model in Indonesia using Blue Ocean Strategy

The Urgency of This research is that SMEs in Indonesia face limited access to capital show a solution to overcome the problem of funding sources to finance SMEs by proposing financing models through crowdsourcing or crowdfunding mechanisms.The crowdfunding model in this study is lending (peer-to-peer) using profit-sharing principles such as mudharabah, which has not been widely studied.The purpose is to analyze whether increasing SME financial inclusion through crowdfunding based on profit-sharing principles is the right model for improving the financial aspects of SMEs in Indonesia and through the ERRC (Blue Ocean Strategy) approach Which factors must be eliminated (Eliminate), reduced (Reduce), improved (Raise) and created (ERRC) The research objective also analysis of the model of increasing SME financial inclusion through Profit-sharing principle-based crowdfunding with a Business Model Canvas approach.Research Methodology: Establishing Key Success Factor, ERRC eliminated (Eliminate), reduced (Reduce), improved (Raise) and created (ERRC), Canvas Strategy conducted on 12 informants from SMEs in 6 cities Surabaya, Batu, Malang, Pasuruan, Sidoarjo and Gresik to develop Blue Ocean strategyThe results of this study are In Indonesia, small and medium enterprises (SMEs) are one of the most important industries in the economy.This study analyzes whether increasing SME financial inclusion through crowdfunding based on profit-sharing principles is the right model for improving the financial aspects of SMEs in Indonesia.This research uses source triangulation research using data in the form of documentation, observation and interviews with several informants who are considered to have different points of view and meet the criteria for the study.It is expected through the ERRC (Blue Ocean Strategy) approach that factors must be eliminated (Eliminate), reduced (Reduce), improved (Raise) and created (ERRC) as well as the Business Model Canvas Approach to establish a model of Crowdfunding SME, namely, aspects of attraction, amenities, accessibility, environmental sustainability, community empowerment, marketing and industrial aspects.The results of this study show that stakeholders expect a rebranding by eliminating environmental sustainability aspects, lowering attraction aspects, raising accessibility and empowerment aspects, and creating industry aspects while creating value-cost trade-offs with a focus on two aspects of the tourism industry: adjusting the pattern of cooperation and community development.