Community funding as external enabler
DOI:
https://doi.org/10.15170/MM.2024.58.04.03Keywords:
crowdfunding, startup, External Enabler FrameworkAbstract
THE AIM OF THE PAPER
The role of crowdfunding is becoming increasingly important, creating new strategic opportunities for economic operators as well as increasing resources. This article aims to understand how CF can help businesses enter new markets and innovate in products and services.
METHODOLOGY
For the systematic literature review, the author applies Davidsson's (2020) External Enabler Framework (EEF). The framework focuses on the identification of external economic enablers, which allows for the analysis of the complex effects of crowdfunding on entrepreneurship.
MOST IMPORTANT RESULTS
The benefits of CF appear in several dimensions, and these advantages are realized through various mechanisms. Based on spatial, temporal, socio-demographic, and sectoral dimensions, CF affects through mechanisms such as compression, reduction, expansion, legitimization, substitution, and uncertainty reduction. These mechanisms enable businesses to flexibly adapt to market conditions and maximize their resources.
The study examines CF from a holistic perspective, considering its many aspects, not just the financial side. The research identifies the unique value-creating mechanisms of CF, which go beyond traditional forms of financing. It also highlights the fact that in CF, financing as a goal is often of secondary importance, and other non-financial advantages also contribute to the success of businesses.
RECOMMENDATIONS
CF plays a key role in promoting the innovation capabilities and competitiveness of economic actors, but it is also vitally important for entrepreneurs to actively exploit these opportunities. The study also draws the attention of idea owners to the additional benefits they can gain beyond financial resources, which can help them achieve success in their ventures.
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