IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2020i2p253-268.html
   My bibliography  Save this article

Entrepreneurial projects’ development: alternative sources of investments

Author

Listed:
  • Viktoriya Zabolotnikova

    (Turan University, Kazakhstan)

  • Irina Selezneva

    (Turan University, Kazakhstan)

  • Arzigul Nizamdinova

    (Al-Farabi Kazakh National University, Kazakhstan)

  • Tamara Mukhamedyarova-Levina

    (Turan University, Kazakhstan)

  • Sagynkul Praliyeva

    (Turan University, Kazakhstan)

Abstract

This study aims at researching the possibilities of using alternative sources for financing small and medium-sized business projects. The main study method is a survey of 275 experts who are heads of small and medium-sized enterprises of the Republic of Kazakhstan. According to the obtained results, the access to financing is an urgent problem for most enterprises. Bank loans and overdrafts remain the main sources of attracting investments for the implementation of development projects. At the same time, a considerable number of companies that need financing were not able to obtain a bank loan or failed to obtain the full amount of the requested funds, and only a small part of the companies managed to raise the required bank financing. Companies face particular difficulties when attracting investments in startups. Despite the fact that nowadays there are many new options for financing startups, Kazakh entrepreneurs do not use them actively. In order to increase the chances for obtaining funds, companies must more actively attract alternative sources of financing for new projects. According to the survey, the most relevant sources of alternative startup financing for Kazakh entrepreneurs have been identified. These are grants, business angel financing, and crowdfunding. When implementing startups, companies can choose the most suitable financing option, or use several options.

Suggested Citation

  • Viktoriya Zabolotnikova & Irina Selezneva & Arzigul Nizamdinova & Tamara Mukhamedyarova-Levina & Sagynkul Praliyeva, 2020. "Entrepreneurial projects’ development: alternative sources of investments," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 253-268, December.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:253-268
    DOI: 10.9770/jesi.2020.8.2(15)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/30/Zabolotnikova_Entrepreneurial_projects_development_alternative_sources_of_investments.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/697
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2020.8.2(15)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gürtler, Marc & Neelmeier, Philipp, 2019. "Risk assessment of mortgage covered bonds: International evidence," Finance Research Letters, Elsevier, vol. 28(C), pages 292-298.
    2. Andrew Ang & Bingxu Chen & William N. Goetzmann & Ludovic Phalippou, 2018. "Estimating Private Equity Returns from Limited Partner Cash Flows," Journal of Finance, American Finance Association, vol. 73(4), pages 1751-1783, August.
    3. Rafael Repullo & Javier Suarez, 2004. "Venture Capital Finance: A Security Design Approach," Review of Finance, European Finance Association, vol. 8(1), pages 75-108.
    4. Santiago Carbó-Valverde & Richard J. Rosen & Francisco Rodríguez-Fernández, 2017. "Are covered bonds a substitute for mortgage-backed securities?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(3), pages 238-253, July.
    5. Othmar M. Lehner & Elisabeth Grabmann & Carina Ennsgraber, 2015. "Entrepreneurial implications of crowdfunding as alternative funding source for innovations," Venture Capital, Taylor & Francis Journals, vol. 17(1-2), pages 171-189, April.
    6. Block, Joern & Fisch, Christian & Vismara, Silvio & Andres, René, 2019. "Private equity investment criteria: An experimental conjoint analysis of venture capital, business angels, and family offices," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 329-352.
    7. Tatyana Yurievna Mazurina & Yana Sergeevna Matkovskaya & Klavdiya Lazarevna Neopulo & Tatiana Mikhailovna Rogulenko, 2020. "Studying the impact of the depreciation policy on the development of innovation potential of industrial enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1513-1526, March.
    8. Joern H. Block & Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2018. "New players in entrepreneurial finance and why they are there," Small Business Economics, Springer, vol. 50(2), pages 239-250, February.
    9. Oecd, 2020. "How Islamic finance contributes to achieving the Sustainable Development Goals," OECD Development Policy Papers 30, OECD Publishing.
    10. Catherine R. Macaulay, 2019. "Smaller firms and public equity: new platforms with old problems," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 10(3), pages 248-277.
    11. Dror Parnes & Srinivas Nippani, 2019. "The integration of mortgage and capital markets: a tale of two administrations," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 11(3), pages 405-431, May.
    12. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alsagr, Naif & Cumming, Douglas J. & Davis, Justin G. & Sewaid, Ahmed, 2023. "Geopolitical risk and crowdfunding performance," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).
    2. Francesca Pietro, 2021. "The rationale for listing on equity crowdfunding: actual and expected benefits for companies," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(4), pages 527-549, December.
    3. Camilla Civardi & Andrea Moro & Joakim Winborg, 2024. "“All that glitters is not gold!”: The (Unexplored) Determinants of Equity Crowdfunding," Small Business Economics, Springer, vol. 63(1), pages 299-324, June.
    4. Romi Kher & Shu Yang & Scott L. Newbert, 2023. "Accelerating emergence: the causal (but contextual) effect of social impact accelerators on nascent for-profit social ventures," Small Business Economics, Springer, vol. 61(1), pages 389-413, June.
    5. Swati Gupta & Sahil Raj & Sanjay Gupta & Ajay Sharma, 2023. "Prioritising crowdfunding benefits: a fuzzy-AHP approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 379-403, February.
    6. Bruno Torres & Zélia Serrasqueiro & Márcio Oliveira, 2024. "Crowdfunding in Portugal—Using the Raize Platform to Ensure the Sustainability of Companies and Projects," Sustainability, MDPI, vol. 16(11), pages 1-23, May.
    7. Fan, Xiaoming, 2024. "Fintech platforms and information service quality from the perspective of investor cognition," Technology in Society, Elsevier, vol. 77(C).
    8. Elisa Ughetto & Marc Cowling & Neil Lee, 2019. "Regional and spatial issues in the financing of small and medium-sized enterprises and new ventures," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 617-619, May.
    9. Francis Kwaku Kuma & Mohd Effandi Bin Yusoff & Paul Kwasi Apreku-Djan, 2024. "A Synthesis of Crowdfunding Concepts in the Ghanaian Context: Crowdfunding Information Challenges in Ghana," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 435-460, March.
    10. Xiaohong Huang & Rezaul Kabir & Thuy Ngoc Nguyen, 2024. "Do project quality and founder information signals always matter? Evidence from equity and reward crowdfunding," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3309-3325, July.
    11. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.
    12. Aurélien Petit & Peter Wirtz, 2022. "Experts in the crowd and their influence on herding in reward-based crowdfunding of cultural projects," Small Business Economics, Springer, vol. 58(1), pages 419-449, January.
    13. Fabrice Hervé & Armin Schwienbacher, 2018. "Crowdfunding And Innovation," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1514-1530, December.
    14. Chien-Chi Chu & Ya-Fang Cheng & Fu-Sheng Tsai & Sang-Bing Tsai & Kun-Hwa Lu, 2019. "Open Innovation in Crowdfunding Context: Diversity, Knowledge, and Networks," Sustainability, MDPI, vol. 11(1), pages 1-11, January.
    15. Andreas Wald & Merete Holmesland & Kalanit Efrat, 2019. "It Is Not All About Money: Obtaining Additional Benefits Through Equity Crowdfunding," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 28(2), pages 270-294, September.
    16. Michael M. Moedl, 2021. "Two’s a company, three’s a crowd: Deal breaker terms in equity crowdfunding for prospective venture capital," Small Business Economics, Springer, vol. 57(2), pages 927-952, August.
    17. Pau Sendra-Pons & Dolores Garzón & María-Ángeles Revilla-Camacho, 2024. "Catalyzing success in equity crowdfunding: trust-building strategies through signaling," Review of Managerial Science, Springer, vol. 18(9), pages 2699-2721, September.
    18. Kukurba Maria & Waszkiewicz Aneta, 2018. "Crowdfunding as a Form of Funding for Businesses in the Culturally-Changing Global Economy: A Literature Review," Journal of Intercultural Management, Sciendo, vol. 10(2), pages 99-137, June.
    19. Vincenzo Butticè & Diego Useche, 2022. "Crowdfunding to overcome the immigrant entrepreneurs’ liability of outsidership: the role of internal social capital," Small Business Economics, Springer, vol. 59(4), pages 1519-1540, December.
    20. Antonella Francesca Cicchiello & Serena Gallo & Stefano Monferrà, 2023. "Financing the cultural and creative industries through crowdfunding: the role of national cultural dimensions and policies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(1), pages 133-175, March.

    More about this item

    Keywords

    investments; financing; financial resources; credit; financial services market; small businesses;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:253-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.