Characteristics of Crowdfunding Models. Model Adaptation Issues in Armenian Business Environment

Abstract

Current article is tend to study and relive the Crowdfunding model adaptation issues in Armenian business environment. Purpose. In developing world creating a better environment for working Crowdfunding models can become a useful tool. Crowdfunding has a potential to create jobs and stimulate innovation in many sectors of Armenian economy. And better understanding the typology of crowdfunding models can lead to creating better background for developing crowdfunding platforms. Problem statement. Determine the sequence of actions for developing successful crowdfunding platform. Which will tend to solve the problem of many start-up entrepreneurs and SME owners, who faces many problems in terms of finance in developing world as well as in the Republic of Armenia. Methodology. In this paper, using the general methods of scientific cognition in various aspects, the typology of crowdfunding models has been examined. Results. The issues of adaptation typical for the Armenian crowdfunding models have been identified. There are many substantial problems that create a big obstacle in the way of Armenian crowdfunding platforms. The lack of consistent trust among these fundraisers, as well as the unawareness of most entrepreneurs in capital management is detrimental to necessary development. Conclusions. Many entrepreneurs encounter obstacles due to limited access to capital at financial institutions. Through suggested guidelines in the article, many institutions and individuals, also governmental institutions can collaborate in a systematic way that allows the regularity, transparency of funds activity, use of funds and progress report.