Investigating the Economic Effects of Crowdfunding on Small Businesses

Abstract

Crowdfunding has become a power sector in financial spacs, the industry is creating schism between traditional investors and startups when it comes to capital acquisition. Through internet-based avenues, therefore, entrepreneurs are able to bypass the traditional finance path of conventional essors and tap into an enhanced ecosystem of potential investors and supporters. On the other hand, there is indeed no defiant example to prove that crowdfunding has a true potential to democratize access to capital but however a much elaborated research is needed to know the overall economic impact of crowdfunding on small businesses. This research explicitly exposes the complex relationship between crowdfunding and small businesses, which will later allow provide a comprehensive overview of the mountain of hype. However, contrary to what studies have done, they have just made it more open about things like the factors of crowdfunding campaign success and crowdfunding as an alternative source of finance. This, however, still leaves gaps in knowledge. This study is to purpose these gaps via the utilization of the complicated economic effect of crowdfunding on small businesses as its main subject.