Crowdfunding has emerged as a significant topic in IELTS Writing Task 2, particularly in questions about modern economics and business innovation. Based on analysis of past IELTS exams, this theme has appeared in various forms over the last 5 years and is likely to continue being relevant, especially given the growing influence of digital financing platforms.
Crowdfunding platforms enabling local business growth through digital financing
Analysis of Common Question Types
Here’s a representative question that has appeared in recent IELTS exams:
Some people believe that crowdfunding platforms have revolutionized how local businesses obtain financing, while others argue these platforms may create economic instability. Discuss both views and give your opinion.
Question Analysis
- Topic: Economic impact of crowdfunding
- Task: Discussion + opinion
- Key areas to address:
- Benefits of crowdfunding for local businesses
- Potential economic risks
- Personal stance with justification
Similar to how should cities invest more in public art projects, this topic requires careful consideration of resource allocation and community impact.
Sample Essays with Band Score Analysis
Band 8.5 Sample Essay
The rise of crowdfunding platforms has transformed traditional financing methods, sparking debate about their economic implications. While these platforms offer unprecedented opportunities for local businesses, concerns about their potential destabilizing effects warrant careful examination.
Crowdfunding has democratized business financing in remarkable ways. Small enterprises can now bypass conventional banking systems, accessing capital directly from community members who believe in their vision. For instance, many local restaurants and artisanal businesses have successfully launched through platforms like Kickstarter, creating jobs and stimulating local economic growth. Moreover, this direct connection between businesses and supporters often creates loyal customer bases, ensuring sustainable growth.
However, critics raise valid concerns about economic stability. The lack of traditional vetting processes may lead to risky investments, potentially resulting in significant losses for inexperienced investors. Furthermore, the success of crowdfunding campaigns often depends more on marketing appeal than business viability, which could create market distortions and unsustainable business models.
In my opinion, while crowdfunding’s risks require attention, its benefits for local economic development outweigh potential drawbacks. The key lies in implementing appropriate regulations to protect investors while maintaining the platform’s accessibility. This balance would allow communities to harness crowdfunding’s innovative potential while minimizing economic risks.
Successful crowdfunding campaign showing positive impact on local community
Band 6.5 Sample Essay
Crowdfunding has become very popular for business funding today. Some people think it helps local businesses, but others worry about problems it might cause. I will discuss both sides of this issue.
On the positive side, crowdfunding helps small businesses get money easily. Many small shops and restaurants can start their business without going to banks. This is good because banks often reject small business loans. Also, when local people give money to these businesses, they become regular customers.
However, there are some problems too. Sometimes projects fail after collecting money, and people lose their investments. Also, some business owners might not use the money properly, which can cause problems for the local economy.
I think crowdfunding is mostly good for the economy, but we need better rules. If the government makes good rules, crowdfunding can help many businesses grow without causing problems. This will help make local economies stronger.
Essay Analysis and Scoring Explanation
Band 8.5 Essay Features:
- Sophisticated vocabulary and complex structures
- Clear, logical organization
- Well-developed arguments with specific examples
- Cohesive writing with smooth transitions
- Balanced discussion with clear personal stance
Band 6.5 Essay Features:
- Basic but clear vocabulary
- Simple but adequate organization
- Some development of ideas
- Basic cohesion
- Visible personal opinion
Key Vocabulary for the Topic
- democratize (v) /dɪˈmɒkrətaɪz/ – to make something accessible to everyone
- viable (adj) /ˈvaɪəbl/ – capable of working successfully
- artisanal (adj) /ɑːtɪˈzænl/ – traditionally made by hand
- vetting (n) /ˈvetɪŋ/ – careful examination of something
- sustainability (n) /səˌsteɪnəˈbɪləti/ – ability to maintain at a certain level
- market distortion (n) /ˈmɑːkɪt dɪˈstɔːʃn/ – interference with natural market forces
- regulatory framework (n) /ˈregjʊleɪtəri ˈfreɪmwɜːk/ – system of regulations and guidelines
Future practice topics might include:
- The role of crowdfunding in disaster relief
- Impact of crowdfunding on traditional banking systems
- Crowdfunding’s influence on innovation and entrepreneurship
We encourage readers to practice writing their own essays on this topic and share them in the comments for feedback and discussion.
