Can Crowdfunding Provide a Solution for the Financial Problems of SMEs in Turkey?

Abstract

This chapter aims to study crowdfunding in an emerging economy, Turkey. Crowdfunding is a comparatively new funding practice in Turkey and platforms involved in crowdfunding are very few. In an economic system where entrepreneurs of small sized companies have limited possibilities for securing financial resources crowdfunding could have been a viable tool for the provision of financial resources. However, due to legal constraints, limited usage of social media, lack of computer literacy and lack of knowledge about the issue, crowdfunding in Turkey is a novice micro-funding mechanism where people with similar concerns, lifestyles and values give support. The chapter is based on an analysis of primary (semi-structured interviews) and secondary data about the Turkish crowdfunding arena and discusses the business models, governance mechanisms utilized by crowdfunding platforms.