Final answer:
Research has shown that crowdfunded firms have a more diverse ethnic base, gender, and age compared to firms that use junior public capital markets. Crowdfunding platforms also provide greater access to capital for rural businesses compared to junior public markets.
Step-by-step explanation:
Research has shown that there are indeed differences between the ethnic base, gender, and age of crowdfunded firms compared to those that use junior public capital markets. Crowdfunding tends to attract a more diverse pool of entrepreneurs, including more women and ethnic minorities, compared to traditional capital markets. This diversity can be attributed to the lower barriers to entry and the ability to reach larger networks of potential investors through crowdfunding platforms.
When it comes to rural versus urban entrepreneurial firms, studies have found that crowdfunding platforms provide greater access to capital for rural businesses compared to junior public capital markets. This is because crowdfunding allows entrepreneurs in rural areas to overcome geographic limitations and connect with a wider network of investors.
The differences in the ethnic base, gender, and age of crowdfunded firms can be attributed to the inclusive nature of crowdfunding platforms. These platforms provide opportunities for individuals who may face barriers in accessing traditional capital markets, such as women and ethnic minorities. Additionally, the ability to leverage online networks and connect with a larger pool of potential investors makes crowdfunding a more appealing option for entrepreneurs in rural areas.