1st Edition

Crowdfunding and Entrepreneurship

By Ignatius Ekanem, Steve Ideh Copyright 2024
    296 Pages 2 B/W Illustrations
    by Routledge

    296 Pages 2 B/W Illustrations
    by Routledge

    This accessible text provides an insight into the growing global trend of crowdfunding as a source of entrepreneurial finance.

    Grounded in academic literature, this book looks at the micro and macro issues within crowdfunding, from the entrepreneur’s access to finance at the business level, to the role of government in regulating the market. It helps the reader develop a sound understanding of crowdfunding as a source of finance, the crowdfunding process and potential options when faced with start-up funding issues.

    A range of international case studies of successful and unsuccessful crowdfunding campaigns help readers to apply theory to real-life scenarios. Readers are also supported throughout the book with chapter objectives and summaries, key terms, discussion questions and further reading guidance. Instructor materials such as slides and test questions are available as digital supplements.

    Crowdfunding and Entrepreneurship will be a valuable resource for students of new venture creation and entrepreneurial finance, as well as entrepreneurs exploring crowdfunding as an option for business development.

    Table of contents



    About the authors

    1. Crowdfunding and Entrepreneurship: Setting the Stage
    2. Introduction

      Definition of small and medium enterprises (SMEs)

      Characteristics of successful entrepreneurs

      Capital structure

      The differences between small firms’ and large firms’ capital structure

      Sources of entrepreneurial finance


      Recommended reading


    3. What is Crowdfunding?
    4. Introduction

      Definition of crowdfunding

      Features of crowdfunding

      Evolution and development of crowdfunding

      Types of crowdfunding

      Crowdfunding platforms

      Platform intermediaries

      Characteristics of crowdfunding entrepreneurs

      Benefits of crowdfunding


      Recommended reading


    5. The Financial Behaviour of Entrepreneurs in Relation to Crowdfunding
    6. Introduction

      Pecking order and trade-off theories

      Static trade-off versus pecking order in small firms

      Crowdfunding and the firm’s life cycle

      Types of entrepreneurship


      Recommended reading


    7. Exploring Resource-Based Theory in Crowdfunding
    8. Introduction

      Origin and background of Resource-Based Theory

      The Resource-Based Theory

      Types of resources

      Assumptions of Resource-Based Theory

      The characteristics of strategic resources

      Evaluation of Resources

      Assembling resources through Resource-Based Theory

      Critiques of Resource-Based Theory

      Linking resources with capabilities

      Understanding resources exchanged in crowdfunding

      The Resource Exchange Theory

      Crowdfunding through the lens of Resource Exchange Theory

      Crowdfunding: resources, capabilities and stakeholders

      Stakeholder theory and crowdfunding

      Crowdfunding: stakeholders analysis and involvement

      Crowdfunding: the role of financiers

      The characteristics of stakeholders and resource exchange process in crowdfunding


      Recommended reading


    9. Reducing the Risk of Information Asymmetry in Crowdfunding
    10. Introduction

      What is information asymmetry?

      Advantages and disadvantages of information asymmetry

      Information asymmetry in crowdfunding

      Causes of information asymmetry

      Strategies for reducing information asymmetry in crowdfunding


      Recommended reading


    11. The Trend in The Market of Digital Finance
    12. Introduction

      The concept of financial inclusion

      Digital finance

      Types of digital finance

      The benefits of digital finance


      Digital technologies enable financial inclusion

      FinTech trends


      Recommended reading


    13. The Features of a Good Crowdfunding Campaign
    14. Introduction

      Empirical studies

      The ten commandments of crowdfunding

      Crowdfunding campaign timelines

      The pitch

      The role of effective communication


      Recommended reading


    15. The Problems Encountered by Entrepreneurs in Sourcing Crowdfunding
    16. Introduction

      Challenges of crowdfunding

      The problems of choosing the right crowdfunding platform

      The problems of building up interest

      Avoiding/minimizing crowdfunding minefields


      Recommended reading


    17. The Role of Social Relationships and Networking in Sourcing Crowdfunding
    18. Introduction

      Social relationship and networking in crowdfunding

      The differences between social network theory and business network theory

      Networking and equity crowdfunding

      The network dynamics in crowdfunding

      Relational benefits of networks in crowdfunding

      Social media usage in crowdfunding

      The interplay of social media messages and social ties

      Social network dynamics in charitable crowdfunding

      Social interaction in charitable crowdfunding


      Recommended reading


    19. The Scope of Crowdfunding as A Niche Market
    20. Introduction

      What is a niche market?

      The catalysts for crowdfunding

      The features of crowdfunding as a niche market

      Crowdfunding: closing the finance gap for small firms as a niche market


      Recommended reading



    21. Areas for Government Assistance
    22. Introduction

      Regulatory support of government

      Review of the regulatory framework for crowdfunding

      The need for harmonized EU regulation

      The new EU legislative framework

      JOBS vs. ECSPR

      Other areas of government support

      Blockchain technology in crowdfunding

      Peer-to-peer crowdfunding for local governments


      Recommended reading


    23. Case studies of successful crowdfunding campaigns
    24. Introduction

      Case study 1

      Case study 2

      Case study 3

      Case study 4


      Recommended reading


    Appendix: Links to Support Students


    Ignatius Ekanem is Senior Lecturer in Business and Management at Middlesex University Business School, London. He is the author of Writing a Business Plan: A Practical Guide, also from Routledge.

    Steve Ideh is a chartered accountant and certified management consultant with over 25 years’ experience in finance. He is an adjunct faculty member at several business schools and a regular speaker at entrepreneurship events.