Risk or Opportunity? Exploring the Relationship Between Entrepreneurial Decision and the Use of Equity Crowdfunding Campaigns in Less- and Well-Developed Regions in Italy

Entrepreneurial decision-making is a complex area that impacts the creation and development of new ventures and is one of the main subjects of entrepreneurial research. Our study focuses on the impact of regional disparities on the entrepreneurial decision-making process regarding the adoption of alternative funding sources such as crowdfunding. Crowdfunding has recently garnered considerable interest because of its ability to “democratize” access to capital. Using a least-squares method (OLS) and inferential t-test statistics, we analyze how the entrepreneurial decision-making process differs across Italian regions on the adoption of equity crowdfunding campaigns as fundraising tools. Our results show that regional disparities matter in the entrepreneur’s decision-making process, pushing it towards alternative tools such as crowdfunding. Overall, we provide evidence that crowdfunding has gained prominence in Italy in recent years and may be a viable option for entrepreneurs operating in less developed regions to bridge the traditional regional disparity gap.