Entrepreneurship in Financial Sector Assignment Sample

• Subject Name : Accounting and Finance

Equity Crowdfunding Helps to Democratize the Entrepreneurship in Financial Sector

Table of Contents

Introduction and question analysis

Key findings

Methodology

Expected conclusion

Key research

Reference

Introduction and Question Analysis

The democratization of the institution helps it to perform more liberally and allow the entrepreneurs to perform the best in the competitive market scenario. The policymakers always expect that equity crowdfunding will help in the democratization of finance of entrepreneurial. It allows the unrepresented groups to be part of the institution without the discrimination of ethnicity, age, gender, and geography. There is a growing tendency among investors to be part of the top management team. They are found to be more focussed on the equity crowdfunding rather than the traditional offerings of IPOI. There is a higher chance of equity crowdfunding rather than in initial public offering. It attracts the public more in the area rather than in the initial public offering where the risk is higher. There is a good possibility of liquidation in the crowdfunding and higher return. Crowdfunding helps to promote public involvement in the investment process. it helps to allow all the investors small and big to be part of the investment opportunity.

Key Findings

From the literature review, it has been found that equity crowdfunding is the means of attracting modern investors. The new investors are more likely to invest in the equity crown funding option rather than in any other means. The literature review revealed that there is a good relationship between social network theory and equity retention. Crowdfunding functions according to the social network of the company. The improvement of relations with the investors promp0ted them to invest in equity crowdfunding. It helps to formulate a greater consensus of the investors. In crowdfunding, the people are more focussed on the idea related investment the survey resulted also revealed similar kinds of finding as the inventors responded that they invest as their relationship with the company is good enough and wants to promote the products of the organization.

Methodology

In the research, the qualitative and quantitative data collection method is to be used. The survey will be the means of primary data collection and literature review will support the objective of the study as secondary data that will fall in the category of qualitative data. The data collection method will be used to collect appropriate data.

Expected Conclusion

The study will analyze the fact of whether crown funding is the best means of attracting inventors in the industry as the researchers have found Initial public offering as an old method of attracting investors. There is a growing number of nuisances in the field of investment. Crowdfunding is expected to be a major player in the investment process and converting the entrepreneurs into the democratized institution. It will help the entrepreneurs to find to effectively increase the public investment. With the growth in the system, the public investment in entrepreneurship will grow without any discrimination as per the age, sex, and caste.

References

Cumming, D. J., & Vismara, S. (2017). De-segmenting research in entrepreneurial finance. Venture Capital, 19(1-2), 17-27.

Deuskar, A. B. P., Mani, D., & Nandkumar, A. (2019). Elites vs Masses: Expanding Entrepreneurial Finance through Equity Crowdfunding.

Mamonov, S., & Malaga, R. (2020). A 2020 perspective on “Success factors in Title III equity crowdfunding in the United States”. Electronic Commerce Research and Applications, 40, 100933.

Parhankangas, A., Mason, C., & Landström, H. (2019). Crowdfunding: an introduction. In Handbook of research on crowdfunding. Edward Elgar Publishing.

Schwienbacher, A. (2019). Equity crowdfunding: anything to celebrate?. Venture Capital, 21(1), 65-74.

Stevenson, R. M., Kuratko, D. F., & Eutsler, J. (2019). Unleashing main street entrepreneurship: Crowdfunding, venture capital, and the democratization of new venture investments. Small Business Economics, 52(2), 375-393.

Vismara, S. (2015). Equity Retention and Social Network Theory in Equity Crowdfunding. SSRN Electronic Journal. DOI: 10.2139/ssrn.2654325

Vismara, S. (2016). Equity retention and social network theory in equity crowdfunding. Small Business Economics, 46(4), 579-590.

Vismara, S. (2016). Information cascades among investors in equity crowdfunding. Entrepreneurship Theory and Practice.

Wang, W., Mahmood, A., Sismeiro, C., & Vulkan, N. (2019). The evolution of equity crowdfunding: Insights from co-investments of angels and the crowd. Research Policy, 48(8), 103727.

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