Development of Crowdfunding as an Innovative Method of Social Projects Funding

Abstract

The search for alternative sources, such as the use of crowdfunding, becomes reasonable under the conditions of funding shortage. International experience study, peculiarities of crowdfunding usage and the development of scientific and methodological approaches of its adaptation to Ukrainian realities are relevant to research. The objective of the article is to generalize theoretical aspects and to study the experience of practical implementation of the co-financing principles in Ukraine and in the world, to identify the factors that influence the development and efficiency of the crowdfunding services. The article deals with the issues of introducing an innovative method of fundraising; it is crowdfunding, which allows carrying out co-financing of various projects that mainly have a social orientation. Studies show that in most cases, the Crowdfunding funding schemes are used in creative activities, social projects, educational projects, projects aimed at the implementation of innovative information technologies, environmental projects, sports projects, business projects, and political projects. The meaningful notion of the crowdfunding and its classification features are investigated and specified, its strengths and weaknesses are analyzed. The international experience of the crowdfunding platforms operation is considered. Analysis of statistics on the development of crowdfunding shows a significant increase in its popularity over recent years, due to the high availability of this funding scheme, and makes it possible to involve a wide range of small investors who are interested in the end result.The promising directions of crowdfunding services development in Ukraine are determined. Particular attention is paid to the analysis of the possibilities of use of crowdfunding in the social sphere. The study shows that crowdfunding has a significant potential for development in Ukraine and should become an alternative to traditional sources of funding, especially in the social field.

Model of Value Transfer in Crowdfunding and Sustainable Development of Small and Medium-Sized Enterprises in Poland—Based on Survey Research

“…On the basis of the business model, using the E3 methodology, a value flow map of the business model was developed [68]. This business model represents the flow of value when the exchange involves at least two parties [82]. Exchanges between the actors represented in the value business model are agreements regulating which objects and for what economic value will be exchanged by the actors during the life of a contract [83].…”

“…The E3 business model does not show when and how these exchanges take place [84]. The business model concerns actors, that is, who exchanges value objects with whom, what customer's needs are met with this exchange, and what income and expenditure is thus generated for each actor [82].…”