Inertia to the adoption of crowdfunding in Bangladesh: A study on start-up entrepreneurs
Crowdfunding is an internet-based process of soliciting and accumulation of funds from people to finance business or non-business projects. When many innovative start-ups fail to get capitals from conventional financing sources due to lack of prior credit history and collateral assets, crowdfunding...
Guardado en:
| Autores principales: | , |
|---|---|
| Formato: | article |
| Lenguaje: | EN |
| Publicado: |
Taylor & Francis Group
2020
|
| Materias: | |
| Acceso en línea: | https://doaj.org/article/61c843d6ae6748c7a6f2b5c5d22d5419 |
| Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
| Sumario: | Crowdfunding is an internet-based process of soliciting and accumulation of funds from people to finance business or non-business projects. When many innovative start-ups fail to get capitals from conventional financing sources due to lack of prior credit history and collateral assets, crowdfunding has become panacea for start-ups’ financing difficulty. Despite this huge potentiality, start-ups’ entrepreneurs still reluctant to crowdfunding, especially, in developing countries. However, a little research has been performed to investigate the reasons behind this inertia of start-ups’ entrepreneurs toward crowdfunding. This study intended to unearth the barriers responsible behind the inertia of the entrepreneurs using grounded theory (GT) approach. The research data were collected from 23 start-ups entrepreneurs through semi-structured interview and these entrepreneurs are sampled because of their decision-making authorities in their start-ups. The results indicated that five barriers responsible for the crowdfunding inertia, particularly, absence of crowdfunding know-how, scarcity of government support, vulnerability of security, risk of reputation and unfavorable nature of crowdfunding. Among these, the absence of crowdfunding know-how is most significant concern for the entrepreneurs. The outcome of this study offers a rich conceptualization of inhibitors for crowdfunding, which can be utilized as the guide to effectively design crowdfunding and start-ups fostering strategies. |
|---|