Generalized barriers to entry and economic development

Abstract

Entry barriers, Catching-up, Economic growth and development, O10, O54, E11,

Leveraging Technology Through Crowdfunding to Ease Barriers of Entry Into the Marketplace

“…A major market barrier for entrepreneurs and small startups is the ability to raise capital (Porter, 1980;Talaia et al, 2016). Minorities, women, and entrepreneurs from less developed countries face extra challenges for raising capital to start new business ventures (Bewaji et al, 2015;Naidu & Chand, 2017;Saviotti & Pyka, 2011). One method of raising capital through technology is crowdfunding which is an "open invitation addressed to the public, (with) the aim to obtain financial resources for a specific project," (Wierzbicka, 2018, p. 57).…”

“…One method of raising capital through technology is crowdfunding which is an "open invitation addressed to the public, (with) the aim to obtain financial resources for a specific project," (Wierzbicka, 2018, p. 57). Some research indicates leveraging technology through practices such as crowdfunding may ease this barrier to entry by making funding more accessible (Borello et al, 2015;Saviotti & Pyka, 2011). Crowdfunding has also allowed new products to be introduced to the market, circumventing traditional methods such as venture capitalists (Belleflamme et al, 2013;Rossi, 2014;Wierzbicka, 2018).…”

“…With technology enhancements, organizations must be nimble and make strategic corrections more often (Cummings et al, 2013;Nyuur, 2015). More importantly, technology gives adept entrepreneurs a competitive advantage in dynamic markets (Saviotti & Pyka, 2011;Spulber, 2003).…”