What Makes Crowd Funding Suitable for SMEs and Start-Ups in the Economy - Dissertation Example

The paper “What Makes Crowd Funding Suitable for SMEs and Start-Ups in the Economy?” is a brilliant example finance & accounting dissertation. Many organizations access loans from various financial institutions. However, the cost of capital depends on the source of capital. SMEs and start-ups face different challenges at the beginning of the business or running the business activities. For this reason, they sought to source funds from a platform that leads to the growth of their business.

Crowdfunding is a program meant to provide funds to small businesses because of the various benefits that it offer to business owners. The cost of debt is relatively lower compared to other traditional forms of lending money. In addition, business owners are also able to use this platform to promote their goods and service both at the local and international levels. Financiers also help the entrepreneurs with decisions that lead to the expansion of their business. It is, therefore, important for SMEs and start-ups to make good use of crowdfunding platforms to finance their business activities.

Statement of the problemApparently, small business organizations are supposed to have specific financiers. Initially, they were accessing loans through traditional forms which were expensive and unreliable in most of the cases. For this reason, there was a need to establish other platforms that could allow SMEs and start-ups to access loans. Crowdfunding served as the best platform for accessing such loans in time. However, there are certain factors that attract entrepreneurs to this program of accessing loans.

The current business environment offers quite a challenge to companies that want to expand into foreign frontiers whether locally or globally. Good managers and entrepreneurs understand that the cash flow of a business is a major factor that determines the success of a business or its failure. It is thus imperative for these business owners and managers to generate and manage the funds that they have at their disposal for a business to operate successfully. Crowdfunding is one of the ways that small and medium enterprise owners in contemporary society have found to raise cash for their businesses.