Crowdfunding – could it become a viable option for Hungarian small businesses?

András Bethlendi and Richárd Végh ()
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Richárd Végh: Magyar Nemzeti Bank

Financial and Economic Review, 2014, vol. 13, issue 4, 100-124

Abstract: Crowdfunding is a financing method in which a large number of private individuals or organisations can contribute small sums of money via web-based platforms to support cultural, sports-related, social, technological or business projects and ideas. Crowdfunding is a potential source of finance for the SME sector, in particular, for start-ups. Although crowdfunding volumes tend to increase rapidly in developed countries, they are still considered marginal in comparison to other forms of finance. The first crowdfunding platforms have emerged in Hungary as well. Investor confidence is a factor that could best facilitate the growth of the market, which requires a well-functioning business structure, transparency and adequate investor-protection rules.

Keywords: crowdfunding; crowdfunding platform; startup; peer to peer (P2P) lending; Kickstarter; Lending Club; Crowdcube; JOBS Act (search for similar items in EconPapers)
JEL-codes: E44 G20 G24 G28 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:13:y:2014:i:4:p:102-126

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