The determinants and development of crowdfunding in the Central and Eastern Europe countries
Keywordscrowdfunding, social funding, innovation, financing, Central and Eastern Europe
Motivation: Crowdfunding (CF) is a method of raising money for projects and enterprises by online platforms. Since 2003 it is expanding and becoming a natural method of pre-financing for start-ups before reaching out to investors. The estimations gave the picture of fundraising worldwide at the level of 35 bln USD via CF platforms in 2015. Nevertheless, this method does not progress equally worldwide and it is essential to find what results in the difference in CF development among the countries.
Aim: The aim of the article is to examine the relation between: (1) the welfare of countries, (2) structure of population and (3) availability of crowdfunding. The paper examines the countries of Central and Eastern Europe (CEE) for the period 2005–2015.
Results: There is no direct correlation between GDP per capita of a country with it online per capita investments. The richness of a country does not influence people willingness to invest through online methods. In the countries of average level of welfare, alternative financing sources are used more widely. Moreover, there is a significant impact of the age structure of the population on crowdfunding development. Estonia has the youngest structure of population. Although there are not many inhabitants and the GDP per capita is average, the country has the most willing online crowd investors.
Agrawal, A., Catalini, C., & Goldfarb, A. (2011). Offline relationships, distance, and the internet: the geography of crowdfunding. Retrieved 12.01.2017 from http://pages.stern.nyu.edu.
Bednarz, J., & Markiewicz, M. (2015). From confrontation to cooperation: institutional support in building cooperation of Polish enterprises. Oeconomia Copernicana, 6(3). doi:10.12775/OeC.2015.023.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: tapping the right crowd. Journal of Business Venturing, 29(5). doi:10.1016/j.jbusvent.2013.07.003.
Cho, D.S., & Moon, H.C. (2013). From Adam Smith to Michael Porter: evolution of competitiveness theory. Singapore: World Scientific Publishing.
de Mel, S., McKenzie, D., & Woodruff, C. (2011). Getting credit to high return microen-terprises: the results of an information intervention. World Bank Economic Re-view, 25(3). doi:10.1093/wber/lhr023.
Eurostat. (2016). Retrieved 30.12.2016 from http://ec.europa.eu/eurostat.
Freedman, D., & Nutting, M. (2015). A brief history of crowdfunding including re-wards, donation, debt, and equity platforms in the USA. Retrieved 30.12.2016 from http://www.freedman-chicago.com.
Hollis, A., & Sweetman, A. (1996). The evolution of a microcredit institution: the Irish loan funds, 1720–1920. Department of Economics University of Toronto Working Paper, ECPAP-96-01.
Jain, T.R., & Malhotra, A. (2009). Development economics. New Delhi: FK Publications Educational Publishers.
Mollick, E. (2014). The dynamics of crowdfunding: an exploratory study. Journal of Business Venturing, 29(1). doi:10.1016/j.jbusvent.2013.06.005.
Mollick, E., & Kuppuswamy, V. (2014). After the campaign: outcomes of crowdfund-ing. UNC Kenan-Flagler Research Paper, 2376997. doi:10.2139/ssrn.2376997.
Porter, M.E. (1990). The competitive advantage of nations. London: MacMillan.
Posner, M.V. (1961). International trade and technical change. Oxford Economic Pa-pers, 13(3).
Rugman, A.M. & Oh, C.H. (2008). The international competitiveness of Asian firms. Journal of Strategy and Management, 1(1). doi:10.1108/17554250810909428.
Rupeika-Aboga, R. (2014). Financing in SMEs: case of the Baltic States. Procedia —Social and Behavioral Sciences, 150. doi:10.1016/j.sbspro.2014.09.013.
Schumpeter, J. (2004). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. New Brunswick New Jersey: Trans-action Publishers.
Shneor, R., Jenssen, J.I., & Vissak, T. (2016). Introduction to the special issue current challenges and future prospects of entrepreneurship in Nordic and Baltic Europe. Baltic Journal of Management, 11(2). doi:10.1108/BJM-01-2016-0013.
Steinberg, S., & DeMaria, R. (2012). The crowdfunding bible: how to raise money for any startup, video game, or project. Retrieved 12.01.2017 from http://www.crowdfundingguides.com.
Sullivan, M. (2017). Linkedin public profile. Retrieved 12.01.2017 from https://www.linkedin.com.
Valanciene, L., & Jegeleviciute, S. (2014). Crowdfunding for creating value: stakehold-er approach. Social and Behavioral Sciences, 156. doi:10.1016/j.sbspro.2014.11.248.
Wardrop, R., Zhang, B., Rau, R., & Gray, M. (2015). Moving mainstream: the European alternative finance benchmarking report. London: University of Cambridge.
World Development Indicators. (2017). Retrieved 03.01.2017 from http://databank.worldbank.org.
Zdrazil, P., & Applova, P. (2016). Growth disparities among regions of the Visegrad Group countries: an evidence of their extent and nature. E+M Ekonomie a Man-agement, 19(2). doi:10.15240/tul/001/2016-2-003.
Zhang, B., Wardrop, R., Ziegler, T., Lui, A., Burton, J., James, A. & Garvey, K. (2016). Sustaining momentum. The 2nd European alternative finance industry report. Re-trieved 03.01.2017 from https://www.jbs.cam.ac.uk.
How to Cite
Number of views and downloads: 36
Number of citations: 0