Applicability and Readiness of Crowdfunding in Turkey

International Journal of Business and Social Science, Vol. 7, No. 1, January 2016

12 Pages Posted: 3 Nov 2016 Last revised: 4 Nov 2016

See all articles by Ibrahim E. Sancak

Ibrahim E. Sancak

ZWIRN-Research Center/Ostfalia University of Applied Sciences

Date Written: January 2, 2016

Abstract

This paper discusses the applicability and readiness of crowdfunding in Turkey. Crowdfunding is an alternative financing option for entrepreneurs or businesses via deploying Internet based tools to collect funds from public or multiple individuals in the form of either donations or investments. In Turkey, since capital markets are not well developed, banks are the dominant financial institutions and raising money via capital market instruments is not pervasive. Therefore, alternative fund raising methods are needed for starters. This paper analyses the current conditions for crowdfunding as an alternative financing method in terms of entrepreneurial culture, economic regulation, community engagement and technology. The paper also proposes some policies for potential crowdfunding applications in Turkey. Preliminary findings of this research indicate that as a new financing method, within the framework of requisite regulations, crowdfunding can be successfully implemented in Turkey. However, Turkey is not ready for this alternative financing method from the perspectives of community engagement, entrepreneurial culture and current regulations.

Keywords: Crowdfunding, Alternative Financing, Turkish Financial Markets, Financial Regulation

JEL Classification: K22, G32, L26

Suggested Citation

Sancak, Ibrahim E., Applicability and Readiness of Crowdfunding in Turkey (January 2, 2016). International Journal of Business and Social Science, Vol. 7, No. 1, January 2016, Available at SSRN: https://ssrn.com/abstract=2863328

Ibrahim E. Sancak (Contact Author)

ZWIRN-Research Center/Ostfalia University of Applied Sciences ( email )

Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
130
Abstract Views
557
rank
281,837
PlumX Metrics