“Determinants of Crowdfunding Adoption among Start-ups and SMEs in India"

Abstract

In India, crowdfunding has become a major alternative financing method, providing a forum for a variety of needs and initiatives, such as entrepreneurial endeavors and medical bills. An analytical overview of crowdfunding in India is provided by this paper, which focuses on its varieties, platforms, advantages, dangers, and opportunities. Donation-based, reward-based, equity-based, and peer-to-peer financing are the main types of crowdfunding in India; each one caters to different requirements and draws a variety of donors. These initiatives are greatly aided by major platforms like Impact Guru, Ketto, and Milaap. Numerous technological, social, and institutional elements that affect Indian entrepreneurs' behavioral intention and actual use of crowdfunding platforms are the determinants of crowdfunding adoption. Despite its potential advantages for entrepreneurs and SMEs, crowdfunding is a generally underutilized creative financing option in India. The intention of entrepreneurs to use crowdfunding is greatly influenced by a number of important factors, including perceived trust, trialability, social influence, performance expectations, and facilitating conditions. On the other hand, it has been discovered that perceived danger and effort anticipation have little influence on adoption intentions. Facilitating settings, trialability, and the declared behavioral aim all have a beneficial impact on the actual use behavior of crowdfunding. While perceived risk has less of an impact on attitudes, trust is crucial in promoting crowdfunding adoption. These findings are methodologically based on quantitative study conducted among Indian entrepreneurs utilizing structured questionnaires .Crowdfunding adoption among Indian entrepreneurs can be significantly increased by resolving infrastructure issues, building confidence, and raising awareness of platform usage. This will promote innovation and expansion in the entrepreneurial ecosystem. This study closes a vacuum in empirical research on India and offers policymakers and crowdfunding Managers practical advice to promote adoption in this setting.