Crowdfunding and its effects on business startups has become an increasingly common topic in IELTS Writing Task 2 examinations. Based on analysis of past exam questions from 2019-2023, this theme has appeared approximately 4-5 times, particularly in questions about technology, business innovation, and economic development. Let’s examine a recent real test question that exemplifies this topic.
Question Analysis and Sample Essays
Some people believe that crowdfunding platforms have made it easier for entrepreneurs to start businesses compared to traditional financing methods. To what extent do you agree or disagree with this statement?
Question Analysis
This question requires candidates to:
- Express their opinion on crowdfunding’s impact on business startups
- Compare crowdfunding with traditional financing methods
- Support arguments with relevant examples
- Present a clear, well-structured response
Sample Essay 1 (Band 8.5)
In recent years, crowdfunding has revolutionized the way entrepreneurs launch their businesses, and I strongly agree that these platforms have significantly simplified the startup process compared to conventional financing methods.
Crowdfunding platforms offer several distinct advantages over traditional financing approaches. Firstly, they democratize access to capital by allowing entrepreneurs to present their ideas directly to potential investors worldwide, eliminating geographical constraints and bureaucratic barriers often associated with bank loans. For instance, successful platforms like Kickstarter have enabled numerous innovative products to secure funding from thousands of individual supporters, regardless of the entrepreneur’s location or background.
Furthermore, crowdfunding serves as both a financing tool and a market validation mechanism. When people invest in a project, they essentially pre-order products or services, providing entrepreneurs with valuable market feedback before full-scale production. This dual benefit is particularly evident in technology startups, where companies can gauge consumer interest and refine their offerings based on backer feedback, reducing the risk of market failure.
However, it’s important to acknowledge that crowdfunding isn’t without challenges. Campaign success requires strong marketing skills and social media presence, which some entrepreneurs may lack. Additionally, public exposure of business ideas could potentially lead to intellectual property concerns.
Nevertheless, these limitations are outweighed by the unprecedented opportunities crowdfunding creates. Traditional financing methods often demand extensive collateral, proven track records, and lengthy approval processes, which can be insurmountable barriers for many aspiring entrepreneurs. Crowdfunding circumvents these obstacles while fostering innovation and entrepreneurship on a global scale.
In conclusion, while crowdfunding platforms present certain challenges, they have undeniably transformed the entrepreneurial landscape by providing a more accessible, efficient, and market-oriented approach to startup financing.
Sample Essay 2 (Band 6.5)
I agree that crowdfunding makes it easier to start businesses than traditional methods of getting money. This new way has many benefits for people who want to start their own company.
First, crowdfunding helps entrepreneurs get money without going to banks. They can show their ideas on websites and many people can give small amounts of money. This is better than bank loans because banks usually want lots of documents and security before giving money.
Also, when people use crowdfunding, they can test if their product is good or not. If many people give money, it means the idea is good. For example, many technology products get support from customers before they are made. This helps new businesses know if they will be successful.
However, crowdfunding also has some problems. Sometimes people don’t trust online platforms and worry about losing their money. Also, not all projects get enough money to start the business.
But still, crowdfunding is better than old ways of getting money. It gives more chances to young people who have good ideas but no money. They don’t need to have a rich family or know important people to start their business.
In conclusion, I think crowdfunding makes starting a business easier because it helps more people get money for their ideas.
Scoring Analysis
Band 8.5 Essay Analysis
- Task Response: Comprehensively addresses all parts of the task with well-developed arguments
- Coherence and Cohesion: Logical organization with clear progression
- Lexical Resource: Sophisticated vocabulary use with natural flexibility
- Grammatical Range: Complex structures used accurately
Band 6.5 Essay Analysis
- Task Response: Addresses the task but with less development
- Coherence and Cohesion: Basic organization with some logical progression
- Lexical Resource: Adequate vocabulary with some repetition
- Grammatical Range: Mix of simple and complex structures with some errors
Key Vocabulary
- entrepreneurial (adj) /ˌɑːntrəprəˈnɜːriəl/ – relating to the creation and development of business ventures
- democratize (v) /dɪˈmɒkrətaɪz/ – make something accessible to everyone
- bureaucratic (adj) /ˌbjʊərəˈkrætɪk/ – involving complicated rules and procedures
- circumvent (v) /ˌsɜːkəmˈvent/ – find a way around an obstacle
- collateral (n) /kəˈlætərəl/ – something pledged as security for repayment of a loan
- market validation (n) /ˈmɑːkɪt ˌvælɪˈdeɪʃən/ – confirming that a product/service meets market needs
- insurmountable (adj) /ˌɪnsərˈmaʊntəbəl/ – impossible to overcome
Conclusion
This topic continues to be relevant in IELTS examinations. Practice writing about related themes such as:
- The role of social media in business success
- Traditional vs modern business funding methods
- Technology’s impact on small businesses
Share your practice essays in the comments section for feedback and improvement suggestions.