Finance and Credit
 

Crowdfunding as an alternative tool for financing small and medium-sized businesses

Vol. 24, Iss. 1, JANUARY 2018

Received: 30 November 2017

Received in revised form: 14 December 2017

Accepted: 28 December 2017

Available online: 29 January 2018

Subject Heading: INVESTING

JEL Classification: G19, G23, G32, O16

Pages: 238–250

https://doi.org/10.24891/fc.24.1.238

Panova E.A. OOO Mul'ti-Plast 2000, Moscow, Russian Federation
k79@yandex.ru

https://orcid.org/0000-0002-5830-0087

Importance This paper discusses the issues of crowdfunding. This phenomenon is new and practically not studied by the Russian national science.
Objectives The article aims to analyze the framework of categories and concepts of crowdfunding, reveal its strengths and weaknesses, and determine the prospects for the development of the domestic market crowdfunding taking into account foreign practices.
Methods For the study, I used the methods of comparative analysis, scientific knowledge, and techniques based on logical arguments.
Results The article highlights the advantages, disadvantages and role of crowdfunding as a source of financing for small and medium-sized enterprises.
Conclusions and Relevance In Russia, crowdfunding has not yet found extensive application. The analysis of world and European statistics leads to the conclusion that the importance of alternative financial sources and in particular crowdfunding, has increased in recent years. The study results can be useful both in terms of increasing financing opportunities for small and medium-sized businesses and in terms of considering crowdfunding as a factor of macroeconomic growth.

Keywords: crowdfunding, small and medium enterprises, crowdfunding platform, private investors

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