Factors influencing alternative financing of entrepreneurship through crowdfunding

Javier Manso-Laso, Ismael Moya-Clemente and Gabriela Ribes-Giner
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Javier Manso-Laso: Universitat Politècnica de València, Valencia, Spain.
Ismael Moya-Clemente: Universitat Politècnica de València, Valencia, Spain.
Gabriela Ribes-Giner: Universitat Politècnica de València, Valencia, Spain.

TEC Empresarial, 2025, vol. 19, issue 3, 76-97

Abstract: Access to finance is one of the main challenges faced by innovative SMEs, particularly in the early stages of their development. This study analyzes the factors influencing access to alternative finance, with a particular focus on crowdfunding as a viable solution to alleviate the limitations of traditional financing. Using data from the SAFE survey conducted by the European Central Bank for September 2022, key variables related to the firm’s profile are examined to determine their impact on the choice of funding sources. The findings reveal that innovative companies face greater challenges in securing bank loans due to the perceived risk and uncertainty associated with their projects. In this context, crowdfunding emerges as an effective alternative, particularly for startups and younger firms, which find in this model a flexible and accessible way to obtain capital. Unlike bank financing, access to crowdfunding is not determined by the sector in which a company operates but rather by its capacity for innovation and growth potential. This study underscores the importance of promoting alternative financing mechanisms to strengthen the entrepreneurial ecosystem. Diversifying funding sources, along with public policies that encourage investment in innovation, can contribute to the sustainable development of innovative SMEs by facilitating their access to financial resources and enhancing their economic impact.

Keywords: Innovation; financing; crowdfunding; entrepreneurship; peer-to-peer platforms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:tecemp:021514

DOI: 10.18845/te.v19i3.8140

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