AN OVERVIEW ON THE POTENTIAL ROLE OF PARTICIPATION BANKS IN STARTUP FINANCING

Nowadays it is observed that the new generation scalable business models are becoming effective on a global scale and every country wishes to launch startups that are big enough to operate on the world scale. But startups face many challenges from the establishment phase to the investment phase. First of these difficulties appears to be the problem of accessing financing sources. Due to such difficulties many business ideas with good potential can not be put into practice or they have to stop their activities. Such business models particularly in emerging economies and in Turkey as an alternative source of equity financing provided by participation banks will bring positive results not only to participation banks but also to entrepreneurs and economies. In this study, the importance of startups in developing countries, participation banks’ potential role as equity providers in financing startups and suggestions to realize this potential have been asserted