COMPETITION FOR SMALL AND MEDIUM-SIZED ENTERPRISES FINANCING IN RUSSIA: COMPETITIVE ADVANTAGES AND DISADVANTAGES OF CROWDFUNDING PLATFORMS

Abstract

The study identifies the main competitive advantages and disadvantages of investment platforms involved in the financing of small and medium-sized enterprises (SMEs) in Russia. By the study, crowdfunding for small and medium-sized enterprises is an analogue of overdraft with short repayment intervals. These platforms are used for short and extremely expensive money for urgent financing of awarded government contract or the implementation of a work stage. Two determinants define the system of SMEs financing in Russia. They are the mega-regulator actions and the measures of authorities support; the private investors behavior at the crowdfunding market plays a secondary role. The identified competitive advantages and disadvantages of Russian crowdfunding platforms allow us to make a number of recommendations for the main market participants - the mega-regulator, the authorities and the investment platforms owners. The recommendations aimed at expanding the number of players in the crowdfunding market, providing the safety of investment platforms and developing a mechanism for partial project investing.