New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations

TLDR

New financing alternatives such as microfinance, crowdfunding, and peer‑to‑peer lending have expanded rapidly, yet few studies have examined their antecedents and consequences. This special issue provides an academic foundation for understanding the new financial options entrepreneurs can now use to start and grow ventures. The introductory article synthesizes literature on emerging entrepreneurial finance innovations and proposes a systematic framework for future research. The six papers illustrate how the proposed framework can guide research on these new financial options.

Abstract

New financing alternatives, such as microfinance, crowdfunding, and peer–to–peer lending, have expanded rapidly. To date, few studies have investigated the antecedents and consequences of these financing mechanisms. This special issue provides an academic foundation for understanding new financial options that entrepreneurs can now use to start and grow ventures. In the introductory article, we integrate strands of the literature on emerging innovations in entrepreneurial finance and provide a framework for a systematic approach to new research questions. We conclude with a discussion of the six papers in the special issue and demonstrate how they contribute to the framework.