CROWDFUNDING EQUITY AND FIRM PERFORMANCE AMONG ENTREPRENEURS: A STRUCTURED REVIEW

Abstract

Malaysia's fastest-growing alternative company financing source is crowdfunding. For business owners with creative concepts who otherwise might not have raised the money, it is a seductive chance to take advantage of the audience's influence and launch products and initiatives. Equity-based crowdfunding systems allow investors to pool their funds to participate in businesses, enabling inexperienced investors to follow in their footsteps. This study aims to provide a comprehensive overview of the existing research on the relationship between crowdfunding and firm performance among entrepreneurs. While crowdfunding has gained prominence as a funding mechanism, there is a need to understand its impact on firm performance. This study used the PRISMA approach. The systematic search of academic databases using Scopus and Web of Science yielded a comprehensive selection of studies, reviews and articles related to crowdfunding for the firm performance. After applying an advanced searching approach using keyword crowdfunding, firm performance, and entrepreneurs. The analysis revealed that crowdfunding played a pivotal role in maintaining final finding data (n=30), which reviewed identified key themes, including crowdfunding performance and mechanisms, financing and economic impact, and crowdfunding and entrepreneurship. Expect validation is divided into three themes: crowdfunding performance and mechanisms, financing and economic impact, and crowdfunding and entrepreneurship. Our review synthesizes findings from over 30 studies, revealing diverse and complex relationships between crowdfunding and firm performance. This study highlights the significance of factors such as crowdfunding model choice and the cultivation of social capital. Further research is essential to provide a nuanced understanding of how entrepreneurs can leverage crowdfunding to enhance their firm performance. This study contributes to the growing body of literature on crowdfunding and offers insights that can inform both entrepreneurs and policymakers.