Alternative Forms Of Entrepreneurial Finance Essays
Alternative forms of entrepreneurial finance are proliferating, yet our comprehension of them remains in its infancy. Equity crowdfunding created intrapreneurial and entrepreneurial opportunities in the diverging and adapted capital raising arena. The opportunity changed the paradigm of capital raising in the financial services sector and developed a copious number of new regulatory obstacles. The securities industry can be better understood by analyzing the impact of the change, exploring the key barriers and change opportunities, and considering the enabling and limiting factors.
Impact of Change in Financial Services
Over the last 100 years, there have been instances of financial crises, and lawmakers imposed more rules and regulations on brokers-dealers. After the Great Depression, lawmakers reacted by enacting the Securities Act of 1933 and 1934. These acts protected consumers and created the Securities and Exchange Commission (SEC) (The Laws That Govern, n.d.). After accounting and ethical standards such as Enron, the Sarbanes-Oxley Act of 2002 became law. The Great Recession of 2008 led to the creation the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the phrase “too big to fail” became a part of the lexicon. Dodd-Frank aims to avoid upheaval and prevent another giant’s failure. Rules and guidelines are set up, and then someone figures out how to circumvent them. The government reaction is harsh and often prohibitive.…