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

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  • Garry Bruton
  • Susanna Khavul
  • Donald Siegel
  • Mike Wright

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.

Suggested Citation

  • Garry Bruton & Susanna Khavul & Donald Siegel & Mike Wright, 2015. "New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations," Entrepreneurship Theory and Practice, , vol. 39(1), pages 9-26, January.
    • Handle: RePEc:sae:entthe:v:39:y:2015:i:1:p:9-26
    DOI: 10.1111/etap.12143
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    References listed on IDEAS

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    1. Alessandro Tarozzi & Jaikishan Desai & Kristin Johnson, 2015. "The Impacts of Microcredit: Evidence from Ethiopia," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 54-89, January.
    2. Andy Cosh & Douglas Cumming & Alan Hughes, 2009. "Outside Enterpreneurial Capital," Economic Journal, Royal Economic Society, vol. 119(540), pages 1494-1533, October.
    3. Robert E. Hoskisson & Mike Wright & Igor Filatotchev & Mike W. Peng, 2013. "Emerging Multinationals from Mid-Range Economies: The Influence of Institutions and Factor Markets," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1295-1321, November.
    4. Susanna Khavul & Garry D. Bruton, 2013. "Harnessing Innovation for Change: Sustainability and Poverty in Developing Countries," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 285-306, March.
    5. Autio, Erkko & Kenney, Martin & Mustar, Philippe & Siegel, Don & Wright, Mike, 2014. "Entrepreneurial innovation: The importance of context," Research Policy, Elsevier, vol. 43(7), pages 1097-1108.
    6. Leyden, Dennis P. & Link, Albert N. & Siegel, Donald S., 2014. "A theoretical analysis of the role of social networks in entrepreneurship," Research Policy, Elsevier, vol. 43(7), pages 1157-1163.
    7. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    8. Manigart, Sophie & Wright, Mike, 2013. "Venture Capital Investors and Portfolio Firms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(4–5), pages 365-570, April.
    9. Susanna Khavul & Garry D. Bruton & Eric Wood, 2009. "Informal Family Business in Africa," Entrepreneurship Theory and Practice, , vol. 33(6), pages 1219-1238, November.
    10. Khavul, Susanna & Chavez, Helmuth & Bruton, Garry D., 2013. "When institutional change outruns the change agent: The contested terrain of entrepreneurial microfinance for those in poverty," Journal of Business Venturing, Elsevier, vol. 28(1), pages 30-50.
    11. Tom Vanacker & Sophie Manigart, 2010. "Pecking order and debt capacity considerations for high-growth companies seeking financing," Small Business Economics, Springer, vol. 35(1), pages 53-69, July.
    12. Richard Harrison, 2013. "Crowdfunding and the revitalisation of the early stage risk capital market: catalyst or chimera?," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 283-287, October.
    13. Eric Gedajlovic & Benson Honig & Curt B. Moore & G. Tyge Payne & Mike Wright, 2013. "Social Capital and Entrepreneurship: A Schema and Research Agenda," Entrepreneurship Theory and Practice, , vol. 37(3), pages 455-478, May.
    14. Ajay K. Agrawal & Christian Catalini & Avi Goldfarb, 2011. "The Geography of Crowdfunding," NBER Working Papers 16820, National Bureau of Economic Research, Inc.
    15. Garry D Bruton & Susanna Khavul & Helmuth Chavez, 2011. "Microlending in emerging economies: Building a new line of inquiry from the ground up," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 718-739, June.
    16. Jefferson Duarte & Stephan Siegel & Lance Young, 2012. "Trust and Credit: The Role of Appearance in Peer-to-peer Lending," The Review of Financial Studies, Society for Financial Studies, vol. 25(8), pages 2455-2484.
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