The question of crowdfunding

Crowdfunding sites like Kickstarter and RocketHub, which encourage large pools of investors to contribute small amounts of money to creative projects, have achieved significant visibility over the past couple of years.

In fact, according to spokesman Justin Kazmark, Kickstarter has seen more than $125 million worth of pledges since it was founded less than three years ago, Fox Business reports.

The popularity of crowdfunding has encouraged small companies to want to get in on the action, but applying the practice to funding businesses is currently outlawed by securities laws dating back to the 1930s, the news source notes in a separate article. Two crowdfunding bills that are currently stuck in the Senate could change this, however, which prompted the media outlet to solicit small business owners' opinions about the capital-raising model.

Janice Mahoney, owner of handmade bag company Mama Mahoney Creations, said crowdfunding would allow her to expand her enterprise more quickly and upgrade her business promotions. That said, she recognized the importance of establishing standards and regulations governing who can ask for funds.

Lori Cohn, who founded New Haven, Connecticut-based Charmed Designs jewelry company, echoed Mahoney's sentiments.

"As a solo entrepreneur, having access to legal crowdfunding would allow me to grow in a way I presently cannot," she told the news source.