Reward Based Crowdfunding: Barriers and Borders for Female Entrepreneurship in Northern Ireland

Where traditionally entrepreneurs have approached a small number of sources to request funding, crowd funding is the reverse of this. Crowd funding uses social networks, both virtual and traditional, to attract large numbers of potential backers, contributing relatively small sums. It can provide an opportunity to fund differing types of activities and as such various types of crowd funding platforms have evolved, (Crowdfunding UK, 2017). Crowdfunding exists where there is a large pool of potential backers to draw upon (Agrawal et al, 2011; Mollick, 2012) allowing entrepreneurs to secure funds without interest payments, (Mason and Harrison, 1996). Although many types exist, Reward Based Crowd Funding (RBCF) where backers secure a reward ranging from a newsletter to tickets to a new product or service, is the most commonly used by start-ups and SMEs without relinquishing any control or equity in their business. The value of funds sought varies greatly with some requesting small sums and others pitching for significant amounts. RBCF provides a very flexible finance option making it relevant for female entrepreneurs at all stages of business development and growth (Crowdfunder Inside, 2016).