Table I.

SWOT analysis on crowdfunding

StrengthsWeaknesses
  • Accessibility of capital

  • Benefits to communities

  • Rights to make a company’s decisions stay in the hands of entrepreneurs

  • A chance to test the marketability

  • Possibility of ideas being stolen, weaker investor protection and potential for fraud

  • Investors might lack advice as crowdfunding is exceptionally internet-based

  • Administrative and accounting challenges

OpportunitiesThreats
  • Existence of niches

  • Positive effects are expected for the economy

  • Information society

  • Unsuitable legal restrictions arise

  • Risky nature of small business

Source: Valanciene and Jegeleviciute (2013) 

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