Benchmarking equity crowdfunding attractiveness: Evidence from the G20

This study introduces a novel Crowdfunding Attractiveness Index (CAI) to benchmark the equity crowdfunding potential of G20 countries. The index integrates 16 indicators across six drivers—economic conditions, capital market depth, the regulatory environment, innovation capacity, IT infrastructure, and financial inclusion—using a multicriteria decision-making approach that combines entropy weighting and the Technique for Order of Preference by Similarity to Ideal Solution. Covering 3040 observations from 2014 to 2023, the analysis ranks countries by their relative attractiveness to crowd investment. High-income economies consistently score highest, supported by digital infrastructure, financial inclusion, and regulatory quality, while middle-income and low-income countries lag behind, reflecting structural barriers and insufficient policy opportunities. The CAI contributes to the entrepreneurial finance literature by providing the first comprehensive benchmarking framework for crowdfunding ecosystems. It also offers a practical tool for policymakers and investors to assess environments, guide reforms, and allocate capital more effectively.