Crowdfunding and its Impact on Startup Financing Among the Youths in Tampines, Singapore
DOI:
https://doi.org/10.53819/81018102t5247Abstract
Crowdfunding has revolutionized startup financing by providing a platform for entrepreneurs to secure capital from a broad base of investors or backers. This innovative funding method has democratized access to financial resources, enabling startups to turn their creative ideas into viable businesses. The impact of crowdfunding extends beyond financial support, fostering community engagement, market validation, and a sense of shared ownership among backers, making it a dynamic force in the entrepreneurial landscape. Descriptive research methodology was used for this study. The 900 young entrepreneurs of Tampines, Singapore were the intended audience. The study's sample size was 750 people, drawn at random from the pool of 900 young entrepreneurs in Tampines, Singapore. The information was collected using questionnaires. In conclusion, crowdfunding has emerged as a vital source of startup financing among youths in Tampines, Singapore. It offers a democratic platform that allows young entrepreneurs to access capital, test market demand, and build a community of supporters. However, its impact can vary depending on the campaign's appeal, marketing efforts, and the unique challenges faced by each startup, highlighting the need for a well-thought-out strategy when utilizing crowdfunding as a financing avenue. The study recommended that to harness the potential of crowdfunding for youth startups in Tampines, Singapore, it is crucial to invest in digital marketing and social media campaigns that effectively communicate the value proposition of the business and engage the local community. Collaborative efforts between government agencies and local organizations can help educate young entrepreneurs on the intricacies of crowdfunding, providing workshops and resources to enhance their campaign planning and execution. Startups should focus on building a compelling narrative and showcasing their social impact, as this can resonate strongly with backers and increase the chances of successful crowdfunding campaigns while fostering a sense of community involvement in Tampines.
Keywords: Crowdfunding, Startups, Financing, Youths, Singapore
References
Böckel, A., Hörisch, J., & Tenner, I. (2021). A systematic literature review of crowdfunding and sustainability: highlighting what really matters. Management review quarterly, 71, 433-453. https://doi.org/10.1007/s11301-020-00189-3
Boulahbel, Z. (2021). Crowdfunding as an alternative form of islamic financing for startups and small enterprises. South East Asia Journal of Contemporary Business, 24(1), 99-107.
Camilleri, M. A., & Bresciani, S. (2022). Crowdfunding small businesses and startups: A systematic review, an appraisal of theoretical insights and future research directions. European Journal of Innovation Management, (ahead-of-print). https://doi.org/10.1108/EJIM-02-2022-0060
Hendratmi, A., Ryandono, M. N. H., & Sukmaningrum, P. S. (2020). Developing Islamic crowdfunding website platform for startup companies in Indonesia. Journal of Islamic Marketing, 11(5), 1041-1053. https://doi.org/10.1108/JIMA-02-2019-0022
Jalaja, L. (2022). Start Up Financing in India–Avenues and Challenges. PalArch's Journal of Archaeology of Egypt/Egyptology, 19(2), 727-739.
Jung, E., Lee, C., & Hwang, J. (2022). Effective strategies to attract crowdfunding investment based on the novelty of business ideas. Technological Forecasting and Social Change, 178, 121558. https://doi.org/10.1016/j.techfore.2022.121558
Kasri, R. A., & Indriani, E. (2022). Empathy or perceived credibility? An empirical study of Muslim donating behaviour through online charitable crowdfunding in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 15(5), 829-846. https://doi.org/10.1108/IMEFM-09-2020-0468
Kleinert, S., Bafera, J., Urbig, D., & Volkmann, C. K. (2022). Access denied: How equity crowdfunding platforms use quality signals to select new ventures. Entrepreneurship Theory and Practice, 46(6), 1626-1657. https://doi.org/10.1177/10422587211011945
Lazzaro, E., & Noonan, D. (2021). A comparative analysis of US and EU regulatory frameworks of crowdfunding for the cultural and creative industries. International Journal of Cultural Policy, 27(5), 590-606. https://doi.org/10.1080/10286632.2020.1776270
Nordin, N., & Zainuddin, Z. (2023). A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs. International Journal of Islamic Business, 8(1), 79-90. https://doi.org/10.32890/ijib2023.8.1.5
Polatos, M., & Kernitskyi, A. (2023). Customer engagement and co-creation in crowdfunding: Multi-case study on tabletop Kickstarter campaigns.
Troise, C., & Tani, M. (2020). Exploring entrepreneurial characteristics, motivations and behaviours in equity crowdfunding: some evidence from Italy. Management Decision, 59(5), 995-1024. https://doi.org/10.1108/MD-10-2019-1431
Wisuttisak, P., Binh, N. B., & Terry, A. (2022). Regulatory frameworks of crowdfunding for startups in Singapore, Thailand, and Vietnam. Innovative Finance for Technological Progress, 99-120. https://doi.org/10.4324/9781003220220-8
