Assignment Sample on EGLO7026 Master Project
Introduction to the study
For a creative business, finance is always the main barrier to access. In achieving investment, they also face some challenges such as lack of understanding and information about relevant sources of difficulty, finance in presenting and developing a business plan in a convincing way, and also it relied on a failing model of business (Alegre and Moleskis, 2021). Let the researcher further explain the crown funding. So a new financial source has been introduced to help these resolving problems, and this financial source is known as crowdfunding. The definition of crowdfunding can be referred to as the mutual effort used for the main support by numerous investors. With a small amount of contribution, the business and individual projects are financed by many entrepreneurs, allowing innovators, business owners, and individuals to use their social networks to raise capital. It is said that most crowdfunding is based on online platforms (Petit and Wirtz, 2021). This kind of platform serves the funder who provides the demanding finances and the project owner who asks for financing the project.
Aim– The aim of the study is to understand the importance of crowd funding in the creative industry.
Objectives
- To understand the process of crowd funding post pandemic.
- To evaluate the strategies of crowd funding.
- To recommend strategies to improve crowd funding in the creative industry.
Research question
- What is the process of Crowd Funding in the creative industry?
- What are the strategies followed for crowd funding?
- What more we can do to attract crowd funding g in the creative industry?
Literature Review
Campaign process– It is said that the campaign of crowdfunding holds an average of 9 weeks. The funder who provided the amount depends very much on the model and the project of crowdfunding.
Models– It is seen that the funding is limited for donations and very important for equity models. There are four important models of crowdfunding that exist; those four models are a reward, lending, equity, and donation (Di Pietro et al., 2021). Now it is seen that within those models, there exist hybrid models also. It is normal for a man to invest in something in which they have an interest. Since every funder found these things interesting and participated in the project. After participating, the funder identifies himself with the project and relates to a social cause.
Profit maximization process– It is usual that the maximization of profit is not their top priority (KHRABROVA, 2021). The main thing to do for a project owner is to hold the finance as their priority and look for the opportunity to introduce the service or product to the potential customer.
Over the past years, crowdfunding has become more and more popular. It is seen that from 2011 to 2013, the funds that are raised through this financial form are being tripled over the world and double from 2010 to 2012 (Petit and Wirtz, 2021). Europe and North America dominated in the field of the crowdfunding industry. In the industry of crowdfunding, reward-based models are said to be the most active ones. In 2012, the funder made up 43 percent of the total growth that year. And it is considered that the model that was donated that year is the second most main form with 29 percent, followed by the lending based which was 13 percent, and equity model, which was 15 percent (Saryazdi et al., 2021).
Methodology
In 2012 there was a project launched which was given under a particular time of 2 years. The 12 regional partners are involved in identifying the creative sector’s support mechanism and moved away from previous dependence on public funding. Though this project cannot be done with the help of the compass, so they aimed at helping these 12 regional partners.
Research philosophy– The researcher has followed the interpretivism research philosophy to conduct this research. It is seen that the partners are undertaking the program which extensive analysis and research across the EU to know the alternative or other methods of support that is to develop or innovative commercial practices and to share the methods that are used. It is also said that to do this kind of development of sustainable approaches to financing the units for new sector beginnings, the above process should be included (Di Pietro et al., 2021). So for this business, the main objectives that are followed are:
Research Strategy– To identify the innovative or the new good practices, identify the existing ones that help contribute to the achievement of financial sustainability of the units needed to start the business (Chaudhari and Sinha, 2021). Next is to test and assess the nature that is transferable of these good practices where the adoption into policy and local implementation takes place between the regions and thereby it makes a definite contribution to the evidence-based policy for improvement and making. Next is to develop realistic and practical implementations plans for the application and transfer of good practice and improvement in regional policy across all-region regions by working together.
Implementation of the plan
Now the main thing is that how to implement the objectives in a company. So the researcher is going to discuss the implementation of the plans. At first, a program of reports and 12 study visits should depend on good practice. The seminars should be shared, and it is needed to see whether it is done within the consortium. Now it is seen that the key stakeholder helped to make the regional implementation group in each of the 12 regions. They can make regional policy recommendations and assess the transferability of good practices to improve policy. To analyze the main aspects of the theme involved in this practice, the wide coverage area of research has agreed with the partners to break down the three purpose-led workgroups so that the work should be done properly.
Data collection technique– The first one is about the scope of the theme. The fees and the rents are the commercial activities that are renting out spaces and services (Baisa and Khan, 2021). It provides accurate project-based and consulting services that contribute to financial sustainability. From shared commercial services, the clustering benefits and the revenue savings are being recorded.
The second workgroup is about social contextualization. Social interaction is very important in every field. Thus here, the interaction can be beneficial for financial sustainability. For example, social interaction can be done through external and internal networking, which are ties to business and communities.
Now the third workgroup is about the tiers of support. It is assumed that cooperation with partners and support programs can contribute to the sustainability of finance. For example, coaching, partnership agreements, training, etc. It has been confirmed from an examination that there are various levels of support available, revenue, and cost-effectiveness from mentoring, transfer, and community engagements.
Expected Results
In 2013, the funder set up a meeting to set up new entrepreneurs’ needs, and they also developed a methodology. They also made a role for the validator who could apply for crowdfunding. SMEs may have difficulties in raising finance and a limited understanding of the recent financial instruments. We have seen that many business programs have been set up to raise the understanding and awareness of crowdfunding as an optional finance instrument (Ayandibu and Vezi-Magigaba, 2021). It is set up against the stakeholders, regions, business, and advisory community. Though after collaboration with a variety of crowdfunding platforms, the service started as a part of providing business, global financial support with access to fund. It has been seen that CEEI acts as a funding bridge because both the business finance and entrepreneur have their own experience and extensive knowledge.
Now let us discuss the funding body of this policy. With the help of EU project funding, the pilot project event was financed, and the future follow-up initiatives will be funded from CEEIs own budget. Now let’s talk about the terms and conditions. It is seen that there are no formal terms and conditions for any business participation. The best projects are selected based on their potential and innovation form amongst applications received. As a result of the program support, the business accessed the crowdfunding and is subject to the same crowdfunding scheme (Anglin et al., 2021). This crowdfunding objective is implemented in two ways. The first one is the promotion or the education of crowdfunding as a financial option, and the other is the support of the crowdfunding business.
Now let us discuss the challenges that normal people can face regarding this crowdfunding. At first, it can be difficult for anyone to convince people to work in a new way and co-working space. New people may hear this and think that it is a waste of time. But they have to learn to work in a co-working space at first to learn about crowdfunding.
Conclusion
Crowdfunding is a very accessible process that anyone can use and carry out on people’s terms. They can decide when to withdraw or to raise funds. Next, they can control the selling and the promotion of the project of the company. And this process can bring you more money, and it also attracts more people to support the company’s project.
References
Alegre, I. and Moleskis, M., 2021. Beyond financial motivations in crowdfunding: A systematic literature review of donations and rewards. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 32(2), 276-287.
Anglin, A.H., Courtney, C. and Allison, T.H., 2021. Venturing for Others, Subject to Role Expectations? A Role Congruity Theory Approach to Social Venture Crowd Funding. Entrepreneurship Theory and Practice, p.10422587211024545.
Ayandibu, A.O. and Vezi-Magigaba, M.F., 2021. Climate Change and Entrepreneurial Financing. In Handbook of Research on Climate Change and the Sustainable Financial Sector (pp. 399-410). IGI Global.
Baisa, N. and Khan, M., 2021. EXPLORING THE POTENTIALS OF CROWDFUNDING AS A NEW SOURCE OF FINANCE IN SAUDI ARABIA. PalArch’s Journal of Archaeology of Egypt/Egyptology, 18(13).
Chaudhari, S.L. and Sinha, M., 2021. A study on emerging trends in Indian startup ecosystem: big data, crowdfunding, shared economy. International Journal of Innovation Science.
Georgia, O., Di Pietro, F., Bogers, M.L. and Prencipe, A., 2021. Organizational barriers and bridges to crowd openness in equity crowdfunding. Technological Forecasting and Social Change, 162, p.120388.
KHRABROVA, N., 2021. CROWDFUNDING IS A METHOD OF ATTRACTING INVESTMENTS IN THE FORM OF PLATFORM SOLUTIONS. КАЗАНСКИЙ ЭКОНОМИЧЕСКИЙ ВЕСТНИК № 1 (51), p.92.
Saryazdi, A.H.G., Ghatari, A.R., Mashayekhi, A. and Hasanzadeh, A., 2021. I am developing a Comprehensive Framework for Crowd Funding Factors by Using the Hexagon Technique. HighTech and Innovation Journal, 2(2), pp.138-157.
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