This thesis attempts to shed some light on the international applicability on globally rising crowdfunding phenomenon by placing it into the context of Turkish entrepreneurship. Approaching from an entrepreneurial finance perspective, this paper aims to contribute to the babystepping crowdfunding research and to add value to the Turkish entrepreneurship. In an effort to conduct a fruitful basis regarding the main research question of how crowdfunding may contribute to the development of Turkish entrepreneurship, this paper first reviews the available literature and depicts the crowdfunding phenomenon with its relevant definitions, dynamics and dimensions. Secondly, it lays the fundamentals of Turkish entrepreneurship and employs various measures to exhibit the strengths and weaknesses of the Turkish entrepreneurial scene. Thirdly, it incorporates a global comparison of American, German and Turkish crowdfunding markets. Following this multinational comparison, a new framework is created with respect to the local profile of Turkish entrepreneurship. This framework is then utilized in order to conclude the assessments regarding the embracability of online crowdfunding in Turkey and to make recommendations for the development of Turkish crowdfunding.
Table of Contents
1. Introduction
2. The Crowdfunding Phenomenon
2.1 Definition of Crowdfunding
2.2 The Typology of Actors in Crowdfunding
2.3 Main Drivers of Success: Crowdfunding
3. Profiling Turkey: Economy & Entrepreneurship
3.1 Entrepreneurship in Turkey
3.2 Analyzing Turkish Entrepreneurship with the Legatum Prosperity Index
3.3 Turkish Entrepreneurship in Comparison to G-20
4. Online Crowdfunding in Turkey
4.1 Turkish Crowdfunding Platforms in a Comparative Perspective: Tracing the Babysteps
4.2 Embracability of Crowdfunding in Turkey
4.3 State of Crowdfunding Organs in Turkey: A Lock & Key Assessment of Turkey and Crowdfunding
5. Framework: Three Pillars for the Creation of a Consistent Turkish Crowdfunding Culture
6. Discussion of the Framework
7. Conclusion
Objectives and Themes
This thesis examines the international applicability of the crowdfunding phenomenon by contextualizing it within the Turkish entrepreneurship ecosystem. It explores how crowdfunding can serve as an alternative financial mechanism to support start-ups and foster economic development in Turkey, addressing the specific challenges and structural limitations of the current Turkish entrepreneurial landscape.
- Theoretical foundation and dynamics of global crowdfunding.
- Economic and entrepreneurial profile of Turkey including comparative indices.
- Performance analysis of Turkish crowdfunding platforms versus international benchmarks.
- Barriers to entry such as trust gaps and educational deficiencies.
- Development of a three-pillar framework (Regulation, Education, Research) for a consistent Turkish crowdfunding culture.
Excerpt from the Book
The Crowdfunding Phenomenon
As a quite recent trend, the epistemological and scholarly backgrounds of crowdfunding are in their babysteps. Giudici et al. (2012) confirm this in their phenomenon-based entrepreneurial finance research about crowdfunding by stating that the crowdfunding has fulfilled the embryonic knowledge state and knowledge about the crowdfunding phenomenon is currently in a growth phase. Parallel to this, the definitions provided to clarify the crowdfunding phenomenon are not that many. Crowdfunding is a term disentangled from the broader concept of crowdsourcing (Hemer 2011, Evers 2012 and Wechsler 2013). Belleflamme et al. (2011) define this phenomenon as: "Crowdfunding involves an open call, essentially through the internet, for the provision of financial resources either in form of donations (without rewards) or in exchange for some form of reward and/or voting rights in order to support initiatives for specific purposes".
Placing the concept into a simpler context, Larralde and Schwienbacher (2010) define crowdfunding as "financing of a project or a venture by a group of individuals instead of professional parties (like, for instance, banks, venture capitalists or business angels)." Belleflamme et al. (2011) further simplify the concept by underlining the main idea. The main idea is that funds do not come from a small group of professional investors, but from a “crowd” whose each member contributes a small amount of money. The definitional discussions are not part of the scope of this paper. Nevertheless, the given definitions are particularly useful to form a fundamental understanding of the subject matter.
Summary of Chapters
1. Introduction: Presents the global rise of crowdfunding and outlines the research objective of evaluating its potential for the Turkish economy.
2. The Crowdfunding Phenomenon: Provides definitions, identifies key actors, and discusses the drivers of success based on existing literature.
3. Profiling Turkey: Economy & Entrepreneurship: Analyzes the Turkish economic landscape, entrepreneurial potential, and comparative metrics like the Legatum Prosperity Index.
4. Online Crowdfunding in Turkey: Compares Turkish crowdfunding platforms with international counterparts and evaluates the embracability of the model within the local market.
5. Framework: Three Pillars for the Creation of a Consistent Turkish Crowdfunding Culture: Proposes a strategic model based on Regulation, Education, and Research to foster crowdfunding in Turkey.
6. Discussion of the Framework: Details the individual pillars of the proposed framework and explains their implementation to create a healthy crowdfunding culture.
7. Conclusion: Summarizes findings and emphasizes the necessity of a multi-dimensional approach to successfully integrate crowdfunding into Turkish entrepreneurship.
Keywords
Crowdfunding, Turkey, Entrepreneurship, Entrepreneurial Finance, Crowdfunding Platforms, Start-ups, Innovation, Legatum Prosperity Index, Economic Development, Funding, Venture Capital, Crowdsourcing, Digital Economy, Regulation, Education.
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on the international applicability of the crowdfunding phenomenon and its potential to contribute to the development of the Turkish entrepreneurship ecosystem.
What are the central thematic fields covered?
The work covers entrepreneurial finance, the specific economic and structural profile of Turkey, global comparisons of crowdfunding markets, and strategic framework development.
What is the core research question?
The research asks how crowdfunding can contribute to the development of Turkish entrepreneurship and what steps are necessary for a healthy local crowdfunding industry.
Which scientific methodology is utilized?
The author uses a literature review, comparative analysis of crowdfunding platforms (benchmarking against US and German models), and SWOT analysis based on secondary data.
What is addressed in the main body of the work?
The main body evaluates the current state of Turkish start-ups, identifies barriers such as lack of trust and funding, and proposes a tailored three-pillar framework for the country.
Which key terms characterize the research?
Key terms include crowdfunding, Turkish entrepreneurship, funding diversification, entrepreneurial ecosystem, and regulatory frameworks.
What is the "vocational school stigma" mentioned in the study?
It refers to a specific educational hurdle in Turkey where talented vocational students lack the necessary business skills and self-esteem to pursue entrepreneurship careers.
How does the author evaluate the "trust gap" in Turkey?
The author notes that low stocks of social capital and trust in Turkey are detrimental to the trust-based nature of crowdfunding and must be addressed for successful implementation.
What role does the Turkish government play according to the research?
The research highlights a significant dependency on government-led funding, suggesting that crowdfunding can serve as an alternative to diversify funding channels for entrepreneurs.
- Quote paper
- Kaan Akkanat (Author), 2014, Online Crowdfunding in Turkey, Munich, GRIN Verlag, https://www.grin.com/document/292766
