This study addresses the successive calls to better understand the contexts of crowdfunding as well as the interplay between social and financial factors in driving lender decisions by deploying economic development theory inspired on the two-sector model. Making recourse to the leading prosocial crowdfunding platform KIVA, this study examines the impact of the business-loan purpose (traditional vs modern) on t...
Across the European Union, the market size of crowdfunding totals €16.9 billion with 1,231 active platforms (Chervyakov and Rocholl, 2019). However, the shares of microcredit (MC) allocated to business and personal loans are difficult to compute (European Commission, 2007a), and accessing the availability of banking industry MC is equally hard to ascertain (European Commission, 2007b). Recent efforts by the Eur...