According to recent IELTS exam statistics, topics related to business financing and entrepreneurship have appeared frequently in Writing Task 2, with crowdfunding being a particularly notable focus since 2019. The intersection of technology, finance, and business makes this theme highly relevant for current and future tests. Let’s examine a recent authentic IELTS question that explores impact of crowdfunding on local economies.
Some people believe that crowdfunding platforms have revolutionized how entrepreneurs start businesses, while others argue these platforms create unrealistic expectations and potential risks. Discuss both views and give your opinion.
Analysis of the Question
This is a discussion + opinion essay that requires:
- Examining both positive and negative aspects of crowdfunding for entrepreneurs
- Providing a clear personal stance
- Supporting arguments with relevant examples
- Following proper essay structure and development
Sample Essay 1 (Band 8.5)
The rise of crowdfunding platforms has fundamentally transformed the entrepreneurial landscape, enabling how crowdfunding enables business startups in unprecedented ways. While this innovation brings remarkable opportunities, it also presents certain challenges that warrant careful consideration.
On the positive side, crowdfunding has democratized access to capital, allowing entrepreneurs from diverse backgrounds to pursue their business dreams. Traditional financing methods often involve lengthy approval processes and strict eligibility criteria, whereas crowdfunding platforms provide direct access to potential investors worldwide. For instance, many successful tech startups have secured initial funding through platforms like Kickstarter, demonstrating the role of technology in supporting social entrepreneurship.
However, critics raise valid concerns about the potential risks and unrealistic expectations associated with crowdfunding. Many entrepreneurs miscalculate the complexities of business operations and product delivery, leading to disappointed backers and damaged reputations. Moreover, the public nature of crowdfunding campaigns can expose innovative ideas to competitors, potentially compromising intellectual property rights.
In my opinion, while crowdfunding presents certain risks, its benefits substantially outweigh the drawbacks. The democratization of funding opportunities has created a more inclusive entrepreneurial ecosystem, fostering innovation and economic growth. However, entrepreneurs must approach crowdfunding with thorough preparation and realistic expectations, similar to how they would approach role of venture capital in technology startups.
Sample Essay 2 (Band 6.5)
Crowdfunding has become a popular way for people to start businesses nowadays. This essay will discuss the advantages and disadvantages of using crowdfunding platforms.
The main advantage of crowdfunding is that it helps people get money to start their business. In the past, people had to go to banks or find rich investors, which was very difficult. Now, anyone can put their idea online and get money from many different people. Also, crowdfunding helps entrepreneurs test if people like their product before spending too much money.
However, there are some problems with crowdfunding. Sometimes people promise things they cannot deliver, and supporters lose their money. Also, many people think starting a business is easy because of crowdfunding, but they don’t understand how hard it is to run a successful company. This leads to many failed projects and disappointed customers.
I think crowdfunding is generally good for business but people need to understand importance of financial planning for entrepreneurs. It gives opportunities to many people who couldn’t start businesses before, but entrepreneurs must be honest and realistic about their plans.
Key Vocabulary
- democratize (v) /dɪˈmɒkrətaɪz/ – make something accessible to everyone
- eligibility criteria (n) /ˌelɪdʒəˈbɪləti kraɪˈtɪəriə/ – requirements that must be met
- miscalculate (v) /ˌmɪsˈkælkjuleɪt/ – calculate incorrectly
- entrepreneurial ecosystem (n) /ˌɒntrəprəˈnɜːriəl ˈiːkəʊˌsɪstəm/ – network of business resources
- innovative (adj) /ˈɪnəveɪtɪv/ – introducing new ideas or methods
Visual representation of key factors contributing to successful crowdfunding campaigns
Conclusion
This topic is likely to remain relevant in future IELTS tests. Practice writing essays about similar themes such as:
- The role of social media in modern business funding
- Traditional vs modern financing methods for startups
- The impact of technology on small business success
Share your practice essays in the comments section for feedback and improvement suggestions.
