Abstract:

The lack of funding becomes often the crucial factor to start a new business. Existence of good innovative ideas and even properly developed business plans is not sufficient to develop a start-up. Development of business in early stages of entrepreneurship is highly dependent on the initial funding. The knowledge of young entrepreneurs about potential financial sources is not sufficient and commonly based on traditional funding institutions such as banks, business angels and venture capital funds.

The aim of the research is the feasibility exploration in order to apply the collective financing platforms as alternatives to traditional sources of funding thus promoting the implementation of alternative start-up financial sources concept into academic study courses and university business incubation programs.

The analysis of existing models of collective financing platforms allows concluding the comparison with traditional sources of funding. The research proved the sufficient advantages of collective financing platforms and future potential of finding the appropriate alternatives to existing forms of traditional financial sources.

The survey of young entrepreneurs proved the lack of knowledge about traditional and alternative sources of financing such as crowdfunding and pier-to pier (P2P) lending. The bank loans were found as the best-known source of funding.

Separate survey among the participants of university business incubators indicated the same problem – sufficient lack of awareness about alternative financial sources.

The authors propose to integrate the concept of alternative sources of funding in academic study courses of entrepreneurship programs and include in content of university business incubators’ activities.

Keywords:

Alternative sources of funding, entrepreneurship education, university business incubators, funding of start-ups, crowdsourcing, pier-to-pier lending.