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Assignment: Business Research

   

Added on  2020-10-22

14 Pages4738 Words67 Views
Business ResearchPlan
Assignment: Business Research_1
Table of ContentsINTRODUCTION...........................................................................................................................1Literature Review............................................................................................................................1Research Aims and Objectives (50)................................................................................................4Research Methodology....................................................................................................................5Research Design:.........................................................................................................................5Research Philosophy:...................................................................................................................5Research approaches:...................................................................................................................5Nature of research:.......................................................................................................................6Time Frame:.................................................................................................................................6Data collection:............................................................................................................................6Sampling..........................................................................................................................................7Accessibility....................................................................................................................................7Ethical issues...................................................................................................................................8Significance.....................................................................................................................................8Deliverables.....................................................................................................................................8Required resources...........................................................................................................................9Gantt Chart.......................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONCrowd funding is considered to be an effective source of finance which allows founders ofboth profit and not for profit organization to fund their business from relatively large number ofindividuals with the help of internet. The present research aims at ascertain the implications forSMEs using crowdfunding in order to achieve growth in the UK market. It will help in gatheringadequate amount of data related to various models of crowd funding. A high range ofdevelopment in the number of SMEs in UK have been noticed which requires a shift fromtraditional source of financing. Hence, the research will also be helpful in ascertaining variousadvantages and disadvantages that are directly related to crowdfunding for various types ofSMEs present in the economy. Literature ReviewOverview to crowd fundingAccording to Belleflamme, Lambert and Schwienbacher, (2014) crowdfunding isconsidered to be a practice of funding a particular project in such a manner that a small amountof money can be generated from a large number of people, typically with the help of internet.Crowdfunding is a common source of crowdsourcing and an alternative method of arrangingfinance for a particular activity. It plays an important role in arranging wide range of funds forentrepreneurial ventures which are actually being established for profits, generally for artisticand creative projects. It is also helpful in community oriented social entrepreneurship projects aswell. However, in contrast to this, as per the views of Agrawal, Catalini and Goldfarb, (2014)crowdfunding is a small amount of capital being arranged from various individuals to financesome new ventures. It is an easy method that is generally adopted due to its effectiveaccessibility of vast network of people with the help of social media and other crowd fundingwebsites available these days. These websites tend to bring various entrepreneurs and investorstogether which help in increasing the scope of investment and thereby entrepreneurship who cannow arrange their finances beyond their traditional circle, that is, venture capitalists, owners,relatives and friends. The ventures can pitch their ideas to the investors with the aim to raisefunds. There are other crowdfunding projects that are based on rewards where investor may alsotake part in launching a new product for their investment. According to Ahlers and et.al., (2015) equity-based funding is also gaining adequateamount of popularity these days as it helps in raising adequate finances without transferring any1
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type of ownership to the investors as it is applicable in the case of venture capitalists. Investmentgenerated through equity based crowdfunding ventures, are generally regulated by Securities andExchange Commission (SEC). However, in contrast to this, as per the opinion of Gerber, Huiand Kuo, (2012) another type of crowdfunding technique that is quite common these days isreward based crowdfunding technique, where entrepreneurs indulge in preselling products andservices so as to launch a business concept without incurring any type of debt or sacrifice equityshares for investment. Models of crowd fundingIn the opinion of Wheat and et.al., (2013) crowdfunding is considered to be a major toolin order to provide financing with the aim of aiding Small Business Enterprises. It plays asubstantial role in enhancing overall condition of the market in such a manner that it initiates neproduct and service development mechanism by providing promising ideas to people. It is apreferable method of getting investments and fund for the organization. There are various modelsof crowdfunding that can generally be used by various entrepreneurs so as to given their businessa good financial back. These models are, Donation, Reward, equity Interest and Mixed. As per the views of Gerber and Hui, (2013) Donation model of crowdfunding refers tofinancing people to work towards a good cause. It helps them to bring positivity that somethinggood has been done from their side normally related to some kind of social value attached to it.The concept is actually related to sponsor where a creative field of art is promoted for artisticwork. Commonly known donation crowd funding companies functioning in UK are, Just Givingand Space hive, which generally donate their investment for some social cause. Another specialtype of donation crowd funding company is Unbound. It is responsible for offering special modelto the companies, where it crowds the organization they like to see conversion of any book ideainto reality. However, as per the views of Colombo, Franzoni and Rossi‐Lamastra, (2015) rewardcrowdfunding model, where, it pledges to give certain amount of investment to the particularcompany. However, the project must be able to offer something in return, such as, poster or anypiece of merchandise. Commonly known reward model functioning in UK are, Kickstarter andIndiegogo. Other sites functioning in UK as reward crowd funding ventures are, Bloom venturecatalyst in Edinburgh and crowd funder in Exeter. These two companies, generally supportartists and creative industries. 2
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