Unveiling the potential of community financing for entrepreneurs: A systematic review and research agenda

Abstract

Grassroots entrepreneurship catalyses economic revitalization, innovation and societal transformation. However, microentrepreneurs, especially women, often encounter amplified impediments to obtaining formal finance, hindering their growth. This study proposes a community-based financing model, anchored in informal collectives, such as self-help groups, that provides a conducive entrepreneurial ecosystem, especially for women entrepreneurs, by providing easy access to finance, market knowledge, social capital and capacity-building support for entrepreneurial development. Despite the growing significance, research in this field is scarce. The present study addresses this gap by integrating bibliometric and systematic review employing the SPAR-4SLR protocol. We analysed 180 Social Science Citation Index-indexed articles published up to September 2024 using the Web of Science database. The present endeavour aims to construct a cognitive framework by conducting performance analysis and highlighting prominent themes using science mapping techniques. The seven identified (n = 59) themes include policy advocacy, women's empowerment, financial inclusion, digitalization, sustainable entrepreneurship, social capital, capacity building and socioeconomic impact assessment. Additionally, a TCCM framework utilized 74 highly esteemed articles and offered valuable insights into future research directions. Our findings call for empirical validation of community financing on entrepreneurial performance and sustainability, digital transformation and the realization of sustainable development goals. In conclusion, this study underscores community-based entrepreneurship as a strategic framework for inclusive and sustainable economic development.