Crowdfunding's impact on SMEs' growth : a case study approach

This paper explores the relationship between equity crowdfunding (ECF) and the growth of Italian SMEs. Using two case studies, one in the agri-food sector and the other in cleantech, and comparing them with non-crowdfunded equivalents, we find that ECF significantly enhanced the post-campaign growth of the two firms, which outperformed their counterparts. This highlights ECF as an effective solution for SMEs to overcome financial constraints problems and achieve growth.Some managerial implications emerge. While ECF poses specific key challenges, the study underlines the importance to take into account corporate governance concerns in maximizing the benefits of this funding opportunity. Our research underscores ECF's potential in entrepreneurial finance and offers insights into its longterm impact.