“Crowdfunding For SMEs: A Comparative Analysis Between UK And Australia”
The overall aim of the project is to comparatively analyse crowdfunding for SMEs in UK and Australia. Its specific objectives are:
- To investigate the impact of crowdfunding finance on long-term performance of SMEs in UK and Australia
- To analyse the factors that affect the success of crowdfunding platforms in UK and Australia
- To investigate the socio-economic impact of crowdfunding in the UK and Australia?
A qualitative explanatory case study approach will be employed in this research. Qualitative case study allows for a holistic and multifaceted approach to understanding a phenomenon (Baxter and Jack 2008). Thus, enhancing the achievement of the research objectives.
The findings of this research have both theoretical and practical implications. The study investigates and amalgamates key theoretical underpinnings of crowdfunding such as entrepreneurial finance theories (pecking order theory, signalling theory, life cycle theory, signalling theory), Institutional theory (cultural, economic and regulatory environment ), behavioural theory (ownership and control preferences of SMEs), economic theories (transaction cost, information asymmetry and agency cost), Strategy theory (organisation of markets with two sided platforms: characteristics, business models, price discrimination) into one conceptual framework. In addition, understanding the drivers and dis-enablers of crowdfunding is crucial for policy design and review. The study gives insights into crowdfunding platforms with different strategic models and the impact of regulatory frameworks on their success. The findings also provide in-depth analysis of the benefits (lower cost of raising capital, business idea testing) as well as the cost (public disclosure of failure, issues of intellectual property protection) associated with crowdfunding.