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Crowdfunding in the Dutch automotive business

Ekelhof, T.J.G. (2020) Crowdfunding in the Dutch automotive business.

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Abstract:Many small and medium entrepreneurs (SMEs) in the Dutch automotive industry choose to finance their business by lending from banks. Banks are losing more and more trust in investing in this business (BOVAG). One of the main reasons for this development is called Digitalization. In recent years, an alternative financing option emerged, which is called Crowdfunding. In this paper, the financing problems among small and medium car dealers in the Dutch automotive industry will be identified and discussed. Through interviews with some of these SMEs the financing problems will be elaborated more in detail, which lead to some conclusions. The interviews made clear that equity crowdfunding is the form of crowdfunding that the interviewees think would have the best chances to succeed in the Dutch automotive industry, and this form has the following two advantages which differentiates the form of other forms of crowdfunding: (1) money which is invested in the company via equity crowdfunding, stays within the company. The money can be used immediately for doing business and does not have to be paid back in the form of donations or rewards. (2) The chance for the entrepreneur to grow together with the investor(s), to increase the Return On Investment. Equity crowdfunding is thus a very interesting opportunity for entrepreneurs to attract external financing for their company.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/83041
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