Crowdfunding Awareness in Turkey

Abstract

There are many obstacles to innovation in today’s world. To find required financial resource for carrying out an innovative project is probably at the top of these obstacles. Conventional financial institutions such as banks, venture capital firms and investment banks accept innovative projects as very risky and they are unwilling to fund innovative projects. As a result of this reality, crowdfunding has been growing rapidly in the world as an alternative way to support innovative projects based on the development of communication technologies. Crowdfunding is an alternative financial tool, which enables project owners to fund their projects without needing banks or other conventional financial institutions. Crowdfunding platforms have been transformed into an area where innovative approaches and products are able to be exhibited worldwide. Therefore, it is important to know and use the crowdfunding model directly or indirectly in implementation of innovative projects. By following this motivation, we conduct a quantitative research to measure level of crowdfunding awareness and to analyze the potential relationship between innovativeness and crowdfunding in Turkey. Our survey results indicate that level of crowdfunding awareness is still low in Turkey. Results of our logit models also prove a significant positive relationship between being innovative and intention to use crowdfunding approach. Innovative people are eager to support projects offered on crowdfunding platforms in Turkey. For the crowdfunding field, understanding this strong relationship would lead policy makers to place special emphasis on innovativeness.