The potential of crowdfunding for sustainable development: a comparison of sustainable and conventional crowdfunding projects
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In: International Journal of Entrepreneurial Venturing, Vol. 13, No. 5, 11.2021, p. 508-527.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The potential of crowdfunding for sustainable development
T2 - a comparison of sustainable and conventional crowdfunding projects
AU - Tenner, Isabell
N1 - Publisher Copyright: Copyright © 2021 Inderscience Enterprises Ltd.
PY - 2021/11
Y1 - 2021/11
N2 - Crowdfunding bears great potential for sustainable entrepreneurs, who often face difficulties in receiving loans from traditional financing mechanisms. Because such ventures are able to tackle pressing environmental and social issues, they are of interest to researchers, and recent studies have already identified factors that increase their crowdfunding success. However, it remains unstudied as to what potential sustainable crowdfunding holds in contributing towards sustainable development and to what extent crowdfunding projects that are environmentally, socially, sustainability- and conventionally oriented actually differ. Based on a quantitative dataset, 282 investment-based crowdfunding projects were characterised along the entrepreneurship typology suggested by Thompson and colleagues. The results revealed that the marketing function of crowdfunding was prevalent for environmentally oriented crowdfunding projects. Socially oriented crowdfunding projects were identified as small scale compared to other project types, since they aimed for lower funding targets. Finally, conventionally oriented crowdfunding projects mainly used crowdfunding to finance service and organisational innovations. Based on these insights, implications for research and practice are drawn.
AB - Crowdfunding bears great potential for sustainable entrepreneurs, who often face difficulties in receiving loans from traditional financing mechanisms. Because such ventures are able to tackle pressing environmental and social issues, they are of interest to researchers, and recent studies have already identified factors that increase their crowdfunding success. However, it remains unstudied as to what potential sustainable crowdfunding holds in contributing towards sustainable development and to what extent crowdfunding projects that are environmentally, socially, sustainability- and conventionally oriented actually differ. Based on a quantitative dataset, 282 investment-based crowdfunding projects were characterised along the entrepreneurship typology suggested by Thompson and colleagues. The results revealed that the marketing function of crowdfunding was prevalent for environmentally oriented crowdfunding projects. Socially oriented crowdfunding projects were identified as small scale compared to other project types, since they aimed for lower funding targets. Finally, conventionally oriented crowdfunding projects mainly used crowdfunding to finance service and organisational innovations. Based on these insights, implications for research and practice are drawn.
KW - crowdfunding
KW - investment-based
KW - sustainability
KW - sustainable development
KW - social
KW - environment
KW - conventional
KW - entrepreneurship
KW - venture
KW - characteristics
KW - Sustainability sciences, Management & Economics
UR - http://www.scopus.com/inward/record.url?scp=85120172494&partnerID=8YFLogxK
U2 - 10.1504/IJEV.2021.119146
DO - 10.1504/IJEV.2021.119146
M3 - Journal articles
VL - 13
SP - 508
EP - 527
JO - International Journal of Entrepreneurial Venturing
JF - International Journal of Entrepreneurial Venturing
SN - 1742-5360
IS - 5
ER -