Crowdfunding has become an alternative source of funding for small medium enterprises (SMEs) due to inadequate or lack of finance at its start-up. There has been lot of analysis by scholars pertaining the determinants of crowdfunding success and the objective of this theory is to pinpoint the factors of a successful crowdfunding project based on the most analyzed determinants by prior researchers (technology-based projects, social media and entertainment-based projects, other projects (such as food, publishing, arts), visual features (such as pictures, comments, updates, videos,etc), as well as investors contribution. Also, to find out if the analysis of prior researchers are in line with the result of our analysis, we based our study on a sample of 1000 projects inclined on a crowdfunding platform (kickstarter) as at 2019. The econometric models used for the analysis were based on logit model, linear probability model, mean difference test and probit regression model (to serve as a check on robustness). The result of our analysis was indeed in line with prior research (Mollick, 2014; Schwienbacher et al., 2014, etc) except for technology-based projects. The outcome of our analysis depicts that the higher investors contribution, the higher the success of crowdfunding. Nevertheless, technology-based projects are less reliable and are less funded on kickstarter platform; thereby, having a low success rate on crowdfunding platforms. More funds were also made on projects relating to social media and entertainment (M&E) and other projects such as publishing, food,etc. The result of the probit regression shows a correct check on the analysis made even though, there might be slight differences in figures as compared to the result of the logit regression. The result of the probability of success rates of projects based on our four main variables of interest was 75% averagely for both logit and probit regressions performed. Start-ups (SMEs) frequently achieve a higher funding support depending on their projects at hand and this can be absolutely motivated by the presence of a high social media networks (thus, founder's link through Facebook, LinkedIn,Twitter and projects related to entertainment). Hence, from our analysis, the determinants of success of crowdfunding projects included high investors contribution, social media and entertainment projects, as well as, social media networks, project funding goal, project updates, project description and country selection of projects. Also, we found out that, project duration and visual description of projects such as images and videos do not contribute to the funding success of crowdfunding on kickstarter platform. / No

Due to changes of regulations in the banking sector after the credit crunch, equity crowdfunding has become an alternative funding source in raising capital for small and medium sized enterprises, that face a lack of financial resources or trustworthiness. The aim of this thesis is to identify the determinants of a successful equity crowdfunding project. We base the study on a sample of 398 projects pitched on an equity crowdfunding platform (Crowdcube) between 2011-2016. The analysis of the cross-section dataset is conducted of Logit, Ordinary Least Squares (OLS) and Negative Binomial regression models. The results show that the more investors participate in the investment, the higher is the success of equity crowdfunding. Moreover, a higher equity participation offered to the investors also has a positive impact on the financing success. However, a prior crowdfunding history of the company does not raise its reliability. Moreover, technology companies are less trusted by the investors and less successful on equity crowdfunding platform. Depending on the model used, start-up companies usually gain a higher success with their pitch, which can be positively influenced by a high social media presence.

The potential of small and micro-enterprises (SMEs) in promoting economic growth in both developed and developing countries is widely accepted and documented by both scholars and policy makers. Lack of access to sufficient financing for these SMEs, especially in developing countries, has been identified as a major bottleneck in realising this potential. Bank credit is one of the major ways of addressing the challenge of inadequate funding that exists in the SME sector. This study was undertaken in order to explore the experiences of bank loan officers and SME borrowers in credit extension to the SME sector in Uganda. The research methodology used multiple methods of data collection which enabled an element of triangulation to be built into the study design. Data was collected both from the supply-side (bank loan officers) and the demand-side (SME borrowers), and entailed unstructured and semi-structured interviews and a questionnaire survey of loan officer and SME borrower experience. Further data was collected through direct observation of the interactive interviews between loan officers and borrowers, which enabled a unique opportunity to enhance the understanding of experiences of loan officers and borrowers. This method offers a development of extant methodologies that have been used to assess bank lending to SMEs, typically indirect methods such as verbal protocols and hypothetical business plans. The supply-side findings suggest that, in addition to the bank lending guidelines and procedures, the organisational context in terms of institutional structure, borrower attributes (especially their knowledge of bank lending guidelines and procedures) and level of congruence between loan officers and organisational goals are important determining factors of credit flow to SMEs. This implies that the context in which lending guidelines are implemented is as vital as the application of these guidelines. Banks are, therefore, challenged to ensure a favourable organisational context in order to facilitate loan officer decisions. On the credit demand side, it was found that borrowers seek to play an active role in the lender-borrower relationship which, in turn, influences decisions made by loan officers. It was established that, in pursuit of this role, borrowers deliberately pre-plan loan requests in an effort to influence the results of the evaluation of their loan applications by loan officers. At times, borrowers intentionally manipulate the information they disclose to loan officers in order to enhance their chances of obtaining credit from banks. The findings also suggest that, in most cases, the borrowers with some knowledge of bank lending guidelines and procedures find it easier to access credit than their counterparts who lack this knowledge. With regard to women-owned SMEs, while there little evidence of ‘official’ discrimination against women-owned SMEs by bank lending policies, there are systematic, cultural, social and legal impediments that lead most women-owned SMEs to access lower levels of credit than their male counterparts. The study recommends that banks should design lending guidelines that integrate both supply and demand factors, instead of focusing only on supply factors like project viability and collateral availability. It is also recommended that banks should develop comprehensive training programmes for borrowers about all aspects of the lending transaction in order to positively influence them. It is further recommended that there should be more consultations with loan officers and borrowers in order to develop a mutually acceptable set of lending policies. This approach, which integrates bank management, loan officers and borrowers in drawing up lending guidelines and procedures, is likely to minimise information asymmetry in SME lending decisions and create a more conducive environment for promoting credit availability to the Ugandan SME sector.

Titel: Sociala företags finansieringsproblematik: En litteraturstudie om bidragande faktorer till finansieringsgapet mellan sociala företag och dess finansiärer. Författare: Jeanette Koznar, Håkan Lindgren och Sandra Nilsson Handledare: Anders Wrenne Institution: Managementhögskolan, Blekinge Tekniska Högskola   Kurs: Kandidatarbete i Företagsekonomi, 15 högskolepoäng Syfte: Uppsatsens syfte är att identifiera det befintliga kunskapsläget för hur fem utvalda faktorerna påverkar finansiärers benägenhet att investera i sociala företag, för att därefter urskönja mönster mellan dessa fem faktorerna och diskutera hur ett samspelande kan minska finansieringsgapet. Metod:  Vi valde att använda oss av en explorativ litteraturstudie som metod då denna karaktäriseras av att fördjupa förståelsen för ett forskningsproblem.   Slutsatser: Vi fann att genom att se sambanden mellan de faktorer som påverkar finansieringsgapet, mellan sociala företag och finansiärer, kan flera faktorers inverkan på finansieringsgapet minskas framförallt genom att attackera en av dessa faktorer: de organisatoriska färdigheterna. / Title: The financial problem for social enterprises: A literature review on contributing factors to the funding gap between social enterprises and its financiers. Authors: Jeanette Koznar, Håkan Lindgren och Sandra Nilsson Supervisor: Anders Wrenne Department: School of Management, Blekinge Institute of Technology  Course: Bachelor’s thesis in Business Administration, 15 credits Purpose: The purpose of this essay is to identify the existing level of knowledge for how the five specifically chosen factors affect financiers' propensity to invest in social enterprises, and descry patterns between these five factors and discuss how an interaction between them can reduce the funding gap.   Method: We chose an exploratory literature review as a method to conduct this study based on that it is characterized by further deepening the understandings of a specific research problem.   Results: We found that by investigating the connection between the factors that contribute to the funding gap between social enterprises and financiers, the impact on the funding gap can be reduced primarily by attacking one of these factors: the organizational skills.

Due to an intensified climate change discourse, renewable energy technologies find higher attention within the energy system and increasingly compete with traditional energy conversion systems. Electricity is progressively being generated through renewable electricity generation technologies (REGT) which harness naturally existing energy fluxes (wind, tide, heat, sun) and convert it to electricity. High investments are currently being made into well-developed REGT using explored energy sources such as wind, hydro or solar. In order to increase cost- and energy efficiency of REGTs, university research projects are developing new REGTs that harvest underexplored energy sources such as the marine energy source. These capital-intensive marine energy research projects are entering the market through university spin-off firms but are often confronted with funding gaps, for the current or future operations. Capital rich investors could provide these funds but are often investing in well explored energy sources rather than into underexplored but more cost- and energy-efficient energy sources. Utilizing a qualitative, grounded theory-influenced approach and combining empirical material of semi-structured interviews, data from a participant observation of an innovation system workshop attendance and data from continuous meetings with an academic REGT spin-off from Uppsala University, this study investigates 1) the drivers and barriers within the funding ecosystem for academic REGT spin-offs in Sweden, 2) the limited access of high capital to underexplored energy sources on the specific case of the marine energy source and 3) a potential common ground for investors with high capital and academic REGT spin-offs in order to allow an accelerated diffusion of the marine energy source. The results indicate that the physical properties of the underexplored marine source should not be accounted for as driver but rather as the foundation of an academic REGT spin-off. This frame allows to bridge practitioners of both the investment field and the academic field of REGT spin-offs through the degree of utilization. An inversion of relations, where not only entrepreneurs increasingly link their field of study to economy and business, but also investors adapt cross-disciplinary knowledge towards academia and natural sciences via the degree of utilization, could be beneficial for an accelerated diffusion of academic REGTs. Bridging practitioners of both fields through the degree of utilization and other means might together with a full commercial application and proof of marine REGTs reduce the funding gap of academic spin-offs in the marine sector and allow access to investors with high capital.

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