CROWDFUNDING SYSTEMS: evaluation and government regulation in the conditions of reengineering

2.1. Methodological guidelines on the assessment of crowdfunding systems The dynamics and state of crowdfunding activities characterize the economic development of the country. The development of crowdfunding is an indicator of the effective condition of the state's economy because a significant amount of crowdfunding operations reflects: ڰ availability of savings of the country's population; ڰ the innovative and high-tech direction of the country's development; ڰ increase in business activity and a decrease in unemployment; ڰ high level of development of the financial sector of the state. In comparison with other tools for accumulating financial resources, the crowdfunding procedure is simpler and easier. The success of the project does not depend on the opinion of several people, such as when considering a business plan by financial and credit institutions for funding. A successful crowdfunding campaign depends on the thoughtful and active work of the project's authors to spread information about it and attract interested parties to the project. However, as with traditional financing methods, crowdfunding is a combination of people, technology, financial resources, etc that together makes up a crowdfunding system. Foreign practitioners and scientists use the term «5P» (Figure 2.1) in relation to the crowdfunding system, similar to the marketing mix, which consists of «4P» (product, price, promotion, and place). Fig 2.1. Elements of a crowdfunding system Note: formed by the authors based (Nekaj, 2014; Shah, 2013) Ɋ eople Ɋ urpose Participation Platforms Productivity Crowdfunding system 51