An Examination of Crowdfunding Challenges in Global Entrepreneurship

This report examines the multifaceted challenges and issues surrounding crowdfunding within the realm of global entrepreneurship. The analysis begins with an introduction to crowdfunding, defining its core mechanisms and highlighting its increasing relevance for startups. The report delves into academic viewpoints, theories, and findings related to crowdfunding, exploring the link between startup culture and the growth of crowdfunding. Real-life examples and statistical data illustrate the practical aspects of crowdfunding, including successful campaigns and the impact of legislation like the JOBS Act. The report also addresses the challenges faced by entrepreneurs, such as building investor trust, navigating the complexities of pitching, and managing expectations. A concluding section summarizes key findings, emphasizing the innovative potential of crowdfunding while acknowledging the need for strategic approaches to attract investors. Furthermore, the report includes reflections on the assignment experience, highlighting the learning gained through team collaboration and critical analysis. The Gibbs Reflective Cycle is used to analyze the assignments, providing insights into the learning process and areas for improvement.

Global Entrepreneurship Assignment

Table of Contents
Assignment 1..............................................................................................................................2
Introduction................................................................................................................................2
Discussion of the main academic ideas......................................................................................2
Discussion of crowdfunding with real-life examples.................................................................3
Conclusion..................................................................................................................................4
References.............................................................................................................................6
Assignment 3..............................................................................................................................7
Introduction................................................................................................................................7
Reflection of experience of doing assignment task 1.................................................................7
Reflection of experience of doing assignment task 2.................................................................8
Reflection of the experience of learning the subject as a whole................................................8

Assignment 1
Title: An Examination of the major issues and challenges of crowdfunding, with special
regard to start-up enterprises.
Introduction
Crowdfunding is the mechanism of funding a project or a venture through the money
borrowed from a large number of investors (Kaplan, 2013). The use of these funds in the
establishment of a new venture has been increasing as people are realizing the possibility of
higher returns from the new start-ups. There is three important economic entity which plays a
role in such funds. These include the economic group who proposes the project or the
venture, the economic group who supports such ideas and an economic group which acts as
the mediator to bring these parties together.
The purpose of this essay is as follows:
 To examine the main issues and challenges related to crowdfunding.
 To examine the academic viewpoints, theories, and findings from the academic
literature as related to crowdfunding.
 To provide the evaluative and summarised findings with some real-life examples and
statistics for illustration on crowdfunding.
Discussion of the main academic ideas
There have been various research and academic findings on crowdfunding. The findings from
these studies indicate a link between the start-up culture and the growth of crowdfunding.
These funds are now being used by charities, institutes, real estate sector, non-profit
organizations, business researches, scientific research, etc. These funds are able to generate
the necessary money for investments (Kumar, Langberg and Zvilichovsky, 2015). Some of
the researchers have even observed that these funding leads to the development of projects
and ventures which otherwise would not receive any funding.

The studies indicate a growing trend in the use of crowdfunding in almost all sectors of the
economy. Some of the researchers have commented that these funds are required to innovate
and growth through undertaking new projects (Hillind, 2014).
The researchers have also commented on the issues related to the crowdfunding which
include, publication records and funding grants, as faced by the start-up companies. These
companies is at the nascent stage where they find it difficult to receive the grants and
publications to attract funds. Some of the internet sites like Consano and Experiment.com,
help the scientists avail the funds from the interested parties.
Some experts have observed that these funds have been successful as engages the hearts and
minds of the investors rather the just fulfilling the responsibility of making investments.
Therefore the result is that hundreds of people like to donate and support these venture.
However, some of the researchers have also found that crowdfunding is still at its early stage
of development. It has the capability to bring change in the way funds are acquired for
projects. Some changes in society can already be seen where funding has become less about
status.
Discussion of crowd funding with real-life examples
The concept of crowdfunding has gained importance in recent years. The changes in the
business environment due to globalization has led to the growth of such funding options.
Through the medium of the internet and other technologies, it has been possible to reach a
large number of people for investments (Sarkar, 2016). They can view the details of the
project from any part of the world and contribute to its development.
There have been many successful crowdfunding campaigns which have helped to provide the
necessary resources for the development of the projects. There have been various
crowdfunding companies which have raised amounts worth $5.1 billion. The concept of
business crowdfunding has become one of the important tools for entrepreneurs looking for
expansion (Crowdfunding provides a new source of research revenue, 2012). Through such
funds, it is possible to get support for the ideas and also get access to the initial customers.
The data from the real-life cases show that equity crowdfunding has been legalized through
JOBS ACT of 2012. As a result of this act which was signed during the presidentship of
Obama, it has been seen that the small and medium-sized enterprises got the boost. There was
an expansion in the entrepreneurship and new companies. These companies can now make

public advertise for the requirement of the funds. These crowdfunding campaigns are known
as General Solicitation.
The cases from the real-life example also indicate that one of the biggest challenges in
crowdsourcing is developing the trust and confidence of the investors for their investments.
The investors are concerned about the credibility of the projects and the ventures that are
being funded through such investments (Stephen, 2017). There have been many instances
when fraudulent campaigns are conducted which result in the loss of money of the investors.
Another challenge which affects the crowdfunding is that there is a lack of information
related to the appropriate stage for pitching. The young entrepreneurs with a great idea have
insufficient information to reach the right investors. Some of the crowd-funders are not able
to estimate the time of return appropriately. They calculate the targets with lack of estimation
which creates distrust among the investors. The goals defined by the entrepreneurs should be
realistic and achievable (Aldrich, 2014). Building expectations which cannot be fulfilled lead
to dissatisfaction among the investors and idea supporters.
Another major setback received by crowd funders also indicates that they tend the pitch the
campaign even before they develop the interest among the people. It is important that the
entrepreneurs, first build the interest in the idea and then aim to raise the funds for the
campaign (Wahjono et al., 2015). The entrepreneurs also should chart out the strategic way in
which the expectations of the investors will be met. These challenges indicate that obtaining
funds through crowd funding is not as easy as many young entrepreneurs may think. They
need to find the right platform and the right strategy so that the adequate amount of funds can
be raised through such methods. Some of the suggestions to overcome the challenges include
starting early before the actual financing need arises and creating the right plan to attract the
funds from the interested parties. The venture which is funded through such funds should
have the capability to add value to the investors through relevant returns.
Conclusion
Finally, it can be concluded that crowdfunding is one of the innovative methods of obtaining
funds for the projects. It helps to support the innovative activities which are important for the
development of society and develop solutions which can solve the needs of the consumers.
The issues and challenges related to crowdfunding can be mitigated by adopting the right
strategy to attract and pitch the investors. The biggest obstacle which is faced while obtaining

the funds relates to building trust among the investors in the success and the scalability of the
projects.

References
Aldrich, H. (2014). Hackers, Makers, and Crowd Funding: Lowering the Barriers to
Entrepreneurship. Entrepreneur and Innovation Exchange.
Crowdfunding provides a new source of research revenue. (2012). Physics Today.
Hillind, H. (2014). Exploiting the Crowd: The New Zealand Response to Equity Crowd
Funding. SSRN Electronic Journal.
Hillind, H. (2014). Exploiting the Crowd: The New Zealand Response to Equity Crowd
Funding. SSRN Electronic Journal.
Kaplan, K. (2013). Crowd-funding: Cash on demand. Nature, 497(7447), pp.147-149.
Kumar, P., Langberg, N. and Zvilichovsky, D. (2015). (Crowd)Funding Innovation. SSRN
Electronic Journal.
Sarkar, A. (2016). Crowd Funding in India: Issues & Challenges. SSRN Electronic Journal.
Stephen, A. (2017). Prospects of Crowd funding Education: A Conceptual
Framework. International Journal Of Engineering And Computer Science.
Wahjono, S., Marina, A., Fikry, M. and ., A. (2015). Innovative funding solution for special
projects: Crowd funding. Journal of Economics, Business, and Accountancy | Ventura,
18(1), p.65.
Wahjono, S., Marina, A., Fikry, M. and ., A. (2015). Innovative funding solution for special
projects: Crowd funding. Journal of Economics, Business & Accountancy Ventura,
18(1), p.65.

Assignment 3
Introduction
The experience from the two assignment has helped me to learn important concepts. I have
gained knowledge about the topic while doing the research and fulfilling the objectives of the
essay. I have been able to critically analyze these concepts and view them in the context of
real world experiences (Potter, 2015).
Reflection of experience of doing assignment task 1
The Gibbs Reflective Cycle helps me to analyse the experiences while completing the
assignment and use the knowledge for further work. It provides a systematic model for
thinking while on the project. I had a fulfilling experiencing while working in a team. The
team members contributed which was extensively discussed and analysed for its outcome.
We studied the real life cases to understand how such concepts work when faced real world
situations. The Following aspects help to identify the experience from this task:
 Description- The situation under which this assignment was completed was
productive. All the group members were able to contribute to the ideas which can be
used for the evaluation of the concept. All the group members were present at the
brainstorming sessions, which helped in completing the assignment.
 Feelings- While completing this assignment, I felt that I am contributing towards an
important learning and enhancing my skill of analysis and evaluation (Zulfikar and
Mujiburrahman, 2017).
 Evaluation- The team members of our group was able to analyse and evaluate the
concepts, through the discussion and the brainstorming sessions. There were some
conflicts among the team members which were later resolved to reach a conclusion.
 Conclusion- The conclusion were drawn about the concepts and how it can be better
managed. These conclusions also included a set of suggestions which can be adopted
by the industry or the economic units.
 Action- Each of the team members took the necessary action to complete the project
and the report (Bezawada, 2012). They put down all the points which helped to frame
the report.

Reflection of experience of doing assignment task 2
The reflection of experience from this assignment has been summarised using the Gibbs
Reflection Model:
 Description- The assignment 2 was completed in a group where each members
contributed to the ideas and concepts. We evaluated the topic in the context of real
world organization to understand the challenges faced.
 Feelings- During the completion of the assignment, we felt that the topic is important
for the development of the thoughts and learning outcome.
 Evaluation – During the entire process of completing the assignment, there was high
level of collaboration and co-ordination among the members. Each one contributed
through the ideas and time.
 Conclusion- The outcome of the experience could have been improved if proper
planning has been done for the discussion of each of the topics of the project.
 Action- Whenever any similar projects will come to our way, we will complete it with
proper planning. This will help to improve the outcome of the project.
Reflection of the experience of learning the subject as a whole
The learning of the subject of Global Entrepreneurships has helped to understand the role
played by start-up ventures in the overall development of the world. There are many
challenges and obstacles which need to be deal while growing a small business. Our group
was able appreciate the need for such ventures and suggested the strategies they can adopt for
better outcome. The learning from the overall project will be used in our future endeavours.
The learnings from the overall subject can be summarised under the following heads:
 Description- The Subject undertaken during the course by me and my fellow mates
has helped in improving the overall understanding about entrepreneurship and its
related challenges (Agarwal and Braguinsky, 2014). The globalised business
environment where the business culture and traditions are transferred from one county
to another, there is another set of challenges which is required to be dealt.
 Feelings- During the completion of this subject, I felt that it is one of the important
areas to understand for the students and the learners.

 Evaluation- The most positive aspect of this subject was it was linked to the present
conditions of business and ventures. It was most relevant in the dynamic and
innovative business environment.
 Conclusion- Based on the learning in this subject, we are ready to take future related
course and understand its importance in overall learning.
 Action- The learnings in the subject prepare us for the business challenges in all our
future endeavours.
References
Agarwal, R. and Braguinsky, S. (2014). Industry Evolution and Entrepreneurship: Steven
Klepper's Contributions to Industrial Organization, Strategy, Technological Change, and
Entrepreneurship. Strategic Entrepreneurship Journal, 9(4), pp.380-397.
Bezawada, D. (2012). Women Entreprenuership: Importance of Ict Education. Global
Journal For Research Analysis, 3(8), pp.1-2.
Potter, C. (2015). Leadership development: an applied comparison of Gibbs’ Reflective
Cycle and Scharmer’s Theory U. Industrial and Commercial Training, 47(6), pp.336-
342.
Zulfikar, T. and Mujiburrahman (2017). Understanding own teaching: becoming reflective
teachers through reflective journals. Reflective Practice, 19(1), pp.1-13.