Leveraging Technology Through Crowdfunding to Ease Barriers of Entry Into the Marketplace

Abstract

Small businesses and entrepreneurs face barriers to entering new markets, such as access to capital. Crowdfunding is one method for financing new ventures. The purpose of this article is to explore how crowdfunding can ease barriers of entry into new markets. Drawing from strategic management, planning, marketing, and technology acceptance literature, we present a conceptual model to explain the use of crowdfunding by small businesses and entrepreneurs. Factors that impact individuals’ propensity to utilize crowdfunding as a source of capital include ease of use, intention to use, attitudes toward use, and effectiveness.