participatory finance

Participatory finance is an investment approach where investors share in both the profits and losses of a project or enterprise. Unlike traditional financing, which mainly involves lending money expecting fixed returns, participatory finance aligns the interests of investors and entrepreneurs by allowing investors to actively participate in decision-making and to earn a fair share of the outcomes. This fosters transparency, risk-sharing, and mutual commitment, often used in cooperative or community-based projects. It emphasizes partnership, shared responsibility, and equitable distribution of financial results, making it suitable for ventures aiming for collective growth and sustainability.