The Impact of the Institutional Environment on the Development of Equity Crowdfunding in Russia: The UK Experience

The relevance of this study is driven by the growing popularity of equity crowdfunding as an alternative source of financing for small and medium-sized enterprises, as well as the need for institutional support for this market in Russia. The objective of this article is identifying institutional factors that constrain the development of equity crowdfunding in Russia, as well as determining successful elements of foreign practices potentially applicable for development of the domestic market. Methodology: the study implies current cross-cultural research based on G. Hofstede’s model of national cultures, analyses legal frameworks system, contractual practices, and market statistics. Scientific novelty lies in the theoretical conceptualisation of equity crowdfunding as an institutional phenomenon shaped by the interaction of cultural norms, formal rules, and contractual practices. The article develops O. Williamson’s approach, demonstrating its relevance for analysing specific features of financial markets. Research results: a comparative analysis is conducted of the institutional environment for equity crowdfunding in Russia and the United Kingdom. Key differences are identified in value orientations, regulatory regimes, contractual forms, and specific market practices. The article outlines the interrelated mechanisms of the institutional environment and the maturity level of the crowdfunding market and it shapes key directions for institutional transformation. Practical significance: the findings can be used by regulators, platform operators, and policymakers in designing mechanisms to improve accessibility and foster the development of equity crowdfunding in Russia.

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