(A New Model In Entrepreneurship Financing: Crowdfunding)

Abstract

Purpose – The most important problem faced by of entrepreneurs is the difficulty in accessing financial resources. Crowdfunding model is one of the new financial methods used by entrepreneurs to reach the capital they need. The use of crowdfunding model in Turkey began in 2010. However, due to legal barriers, only Reward and Donation Based Crowdfunding models were in use until the change of the law on 5 December 2017. The amendment of law includes the Equity Based Crowdfunding model in the legislation but it does not include the Debt Based Crowdfunding. In Turkey, it is considered that the Crowdfunding model will increase with the appliance of the Debt Based Crowdfunding which is the most applied and highest fund providing model. To propose a new model to ensure the implementation of the Debt Based Crowdfunding model in Turkey. Design/methodology/approach – A model of our country was created by examining the world's practices related to Debt Based Crowdfunding. Findings – As a result of the study of world applications, it was concluded that Debt Based Crowdfunding was the most widely used Crowdfunding type. Discussion –The model called "Integrated Debt Based Crowdfunding" for the Turkish application was proposed and opened for discussion. It is considered that using the proposed model in Crowdfunding applications in Turkey will lead to an increase in projects realized and funds collected, making it the preferred method of investment for investors. Keywords: Entrepreneurship, Entrepreneurship Financing, Financing Methods, Crowdfunding, Integrated Debt Based Crowdfunding.