Equity crowdfunding platforms to support innovative small business: the Italian scenario

The study aims on the effective role of equity crowdfunding platforms in supports Italian SMEs. In recent time the world economies have been subjected to a process of transformation oriented to innovation. Particularly, the area in which this process is being applied is entrepreneurial innovation observed from the perspective of financial innovation. To reach the declared goal, Exploratory Descriptive Qualitative (EDQ) research (Carvalho et al., 2005; Cleff, 2014; Modaffari and della Corte, 2022) supports the paper. EDQ is a qualitative methodology suitable for addressing research objectives that aim to provide a direct description of phenomena (Sandelowski, 2004). The EDQ was applied to understand the phenomenon of equity crowdfunding platforms in Italy, through the analysis of 51 active portals that are authorized by CONSOB (Italian acronym for " Commissione Nazionale per le Società e la Borsa "). Equity crowdfunding represents one of the main innovative equity-side financing instruments that support innovative SMEs (Modaffari et al., 2020). Using this tool, companies obtain financial resources as risk capital to financing their business idea. the Italian equity-crowdfunding platforms have an irregular distribution. The data reveals a lack of homogeneity in the territorial distribution of the platforms. Focusing on platforms’ performance, the aggregated data do not show positive results in terms of performance for the 51 active Italian equity crowdfunding platforms. The present study has several theoretical and practical implications. From a theoretical perspective, it enriches the literature on innovative small-medium enterprises and innovative financial tools. From a practical perspective, the present research can be useful twofold. On one hand, it can support public authorities, such as CONSOB. in monitoring the equity crowdfunding phenomenon. On the other hand, it can navigate practitioners in supporting innovative small businesses toward platforms that perform better and therefore stand a greater likelihood of success in raising capital, supporting the growth of start-ups, which represent a rapidly growing entrepreneurial phenomenon in Italy.