Financing business entities through crowfounding as an alternative to financing with bank products in 2020-2023 - based on empirical research

Theoretical background: The years 2020 - 2023 were characterized by a dynamic macroeconomic situation. This posed a challenge for many companies, which were exposed to risks such as: disruption of supply chains, increased production and energy costs, falling demand, rising financing costs, as organizations faced a dilemma related to the continuation of their investments, and some of them had problems with financing current operations. Important from the point of view of many entities, especially those starting up operations, has become the search for alternative sources of financing than the commonly known bank loan. Purpose of the article: The purpose of the article is to verify whether crowdfunding has become an alternative method to bank products in terms of raising funds in 2020 - 2023. It is also crucial to verify what awareness and knowledge companies have regarding alternative forms of financing. Research methods: This article presents the results of an empirical study to identify the use of crowdfunding as a way for organizations to finance companies from 2020 to 2023. In addition, it was important to verify the ways of financing investments and current activities by the survey participants. In addition, the article uses a research methodology that includes critical analysis of secondary sources, as well as methods such as analysis, synthesis, description, deduction, induction and reduction. Polish and foreign literature on corporate finance was analysed. In addition, laws, resolutions, regulations, scientific works of other organizations and reports were analysed, which provided a valuable source of information on crowdfunding in 2020-2023. The generalizing-synthesizing method (deduction, reduction, induction) was used in formulating recommendations. The inductive method helped analyse the importance and characteristics of various sources of crowdfunding for the enterprise. In turn, the deductive method was used to analyse the issue starting from the macroeconomic situation in Poland and delving into the situations of enterprises and changes in the way they finance their activities. Performing a critical analysis of the literature, a reduction technique was used, thus verifying the formulated hypotheses. Main findings: The quantitative survey conducted on a group of 150 businesses showed that in 2020 - 2023 not a large percentage of respondents used crowdfunding. It was about 10% of respondents. Among the entities that chose this form of financing were mainly start-ups, companies from the IT, medical or beauty industries, as well as those related to culture and the arts. It is also important to note that awareness of this form of financing in the analysed period was relatively low. Only 20% of the surveyed entities indicated this form as interesting, while 24% had no opinion on the subject, and as many as 56% had no knowledge of this solution. The results of the survey showed that entrepreneurs in Poland mainly identify such forms of business financing as bank credit, own funds, capital borrowed from family/related parties.