270 Copyright © 2016, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 13 DOI: 10.4018/978-1-4666-9604-4.ch013 ABSTRACT This chapter aims to study crowdfunding in an emerging economy, Turkey. Crowdfunding is a com- paratively new funding practice in Turkey and platforms involved in crowdfunding are very few. In an economic system where entrepreneurs of small sized companies have limited possibilities for securing fnancial resources crowdfunding could have been a viable tool for the provision of fnancial resources. However, due to legal constraints, limited usage of social media, lack of computer literacy and lack of knowledge about the issue, crowdfunding in Turkey is a novice micro-funding mechanism where people with similar concerns, lifestyles and values give support. The chapter is based on an analysis of primary (semi-structured interviews) and secondary data about the Turkish crowdfunding arena and discusses the business models, governance mechanisms utilized by crowdfunding platforms. INTRODUCTION During the last decade crowdfunding has been experienced as an alternative solution for financing especially by those entrepreneurs who seek external financing as a viable solution. By crowdfunding entrepreneurs can reach a wide range of distributed funders who appreciate a project and enjoy being part of it by their financial contributions. Besides being a means to provide financial resources for the entrepreneurs, crowdfunding is a means through which people with similar interests, lifestyles and worldviews are able to experience a sense of community and develop collective identities. Crowdfunding is rooted in crowdsourcing where the “wisdom of the crowd” is used for getting ideas, feedback, and solutions to develop corporate activities (Kuppuswamy & Bayus, 2014; Surowiecki, 2004). In this way, collective knowledge, opinion and skills of individuals characterized by cognitive diversity and independence rather than a single expert are used to solve a problem. In the case of crowdfunding, Can Crowdfunding Provide a Solution for the Financial Problems of SMEs in Turkey? Beyza Oba Istanbul Bilgi University, Turkey