The emergence of well-being in crowdfunding: a study of entrepreneurs and backers of reward and donation campaigns

Efrat, Kalanit; Gilboa, Shaked; Wald, Andreas

doi:10.1108/ijebr-12-2019-0685

Cited by 20 publications

(43 citation statements)

References 65 publications

(111 reference statements)

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“…Moreover, the results confirm H4, implying that crowdfunding participation that is motivated by the desire to fulfill personal values is associated with a sense of meaning in life ( B = 0.3, SE = 0.08, p < 0.01). The quantitative support for H3 and H4 is in line with recent qualitative studies that analyze the linkage between supporting RBCF and DNCF and backers' reported well-being (Efrat et al , 2020a, b, c; Sherman and Axelrad, 2021), however, our results reject H5, as contrary to previous studies (Efrat et al , 2020a, b, c; Sherman and Axelrad, 2021), the quantitative investigation did not support the notion that social intrinsic motivation, as manifested by concepts such as “helping others to fulfill their dreams” (Efrat et al. , 2020a, b and c), is associates with backers' SWB.…”

Section: Resultssupporting

confidence: 86%

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A quantitative study on crowdfunders' motivations, their sense of meaning and social welfare

Sherman

Axelrad

2021

IJEBR

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PurposeIn recent years, crowdfunding has developed as a new fundraising alternative. Yet, the effects of the backing experience in reward and donation-based crowdfunding (DBCF) on well-being were researched only through qualitative practices. The current study offers a novel quantitative inquiry of the association between backing motivation and backers' well-being.Design/methodology/approachThe study is based on a uniform questionnaire distributed among 700 Israeli adults, which included questions about backing experience, sense of meaning and social welfare.FindingsThe results indicate that only intrinsic backing motivation is associated with the sense of meaning in life. Non-investment crowdfunding offers a platform for people who are intrinsically motivated to increase their sense of meaning in life. Moreover, the authors find that the tendency to back further projects is associated with backers' sense of meaning in life.Social implicationsThe findings can promote a better matching between backers' desire for living the good life and entrepreneurs' desire to reach their funding targets. Social welfare implications are discussed.Originality/valueThe linkage between backers' well-being and crowdfunding has not been explored in quantitative studies. Hence, the study offers a novel approach and some new insights on this linkage.

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Section: Resultssupporting

confidence: 86%

“…In a similar context, Efrat et al. (2020a, b and c) draw a model showing that entrepreneurs and backers develop different aspects of well-being during different RBCF and DBCF stages.…”

Section: Introductionmentioning

confidence: 99%

A quantitative study on crowdfunders' motivations, their sense of meaning and social welfare

Sherman

Axelrad

2021

IJEBR

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“…Following the responsiveness of global demand for the now cheaper entrepreneurial funds and the resulting upward shift of the GEFD, the long-run market equilibrium ends up at E 3 . Building on [36], who established wellbeing as a core aspect of entrepreneurial fund supply and demand interaction, and on [37], who linked financial inclusion with wellbeing, the above theoretical developments are empirically tested using a Random Utility theoretic formulation of economic agents' behavioral optimization in the global entrepreneurial finance market.…”

Section: Public Sector and Private Sector Financial Injections And The Gefmmentioning

confidence: 99%

Empirical Analysis of the Global Supply and Demand of Entrepreneurial Finance: A Random Utility Theory Perspective

Niankara

2022

Journal of Open Innovation: Technology, Market, and Complexity

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Considering the globalized nature of international financial markets and the important role of innovative entrepreneurial endeavors for employment and economic development, this paper analyzes the global supply and demand of entrepreneurial finance, in the form of individuals’ savings and borrowings for entrepreneurial ventures in the global economy. To this end, a theoretical treatment of the potential global entrepreneurial finance market (GEFM) dynamics, in response to governments and private sector financial transfers, is first provided. This is followed by the econometric modeling of such dynamics based on intertemporal random utility maximization, using pooled data from the 2014 and 2017 global financial inclusion surveys. The findings reveal, contrary to theoretical predictions, that private sector financial injections (i.e., electronic wage payments), exert an adverse effect on the GEFM; meanwhile, in accordance with theoretical predictions, public sector financial injections (i.e., electronic welfare payments), do positively influence the growth of the GEFM. In addition, compared to their male counterparts, females are found to be 7% more likely to own a formal account, and are 23.4% more likely to save for farming or business entrepreneurship, while also being 18.8% more likely to borrow for entrepreneurial ventures, therefore suggesting a relatively greater growth potential from female entrepreneurship in the global economy.

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“…While well-being has hardly been addressed in the context of crowdfunding, several studies have hinted at its presence in the reasons for crowdfunders’ and backers’ actions (Gerber and Hui, 2013; Giudici et al , 2018; Gleasure and Feller, 2016; Hui et al , 2014; Ryu et al , 2020). Recently, Efrat et al (2021) presented the first empirical study showing that the interaction between crowdfunders and their backers is crucial for crowdfunders’ well-being. However, serials were out of the study’s scope.…”

Section: Research Backgroundmentioning

confidence: 99%

“…The TPB is a well-established theory of behavioral drivers and was previously found to be relevant in the context of crowdfunding from the perspective of backers (Shneor and Munim, 2019). Well-being has emerged in recent studies as a meaningful driver of crowdfunding participation (Efrat et al , 2021). Our findings demonstrate that while the TPB provides a foundation for explaining novice crowdfunding behavior, the well-being that evolves in the aftermath of the first campaign drives novices to engage in serial crowdfunding.…”

Section: Introductionmentioning

confidence: 99%

The transition from novice to serial crowdfunders: behavioral antecedents and well-being drivers

Efrat

Wald

Gilboa

2021

INTR

Self Cite

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PurposeSerial crowdfunders are vital to the advancement of crowdfunding, either by launching subsequent campaigns or by mentoring novice (first-time) crowdfunders. However, research on crowdfunders’ drivers has focused on either novice crowdfunders’ motivations or the factors contributing to serial crowdfunders’ success. The present study aims to complement existing knowledge on serial crowdfunders by exploring behavioral and well-being aspects that drive novice crowdfunders to become serial crowdfunders.Design/methodology/approachData on crowdfunders were retrieved through in-depth interviews with 42 novice and 17 serial crowdfunders on a list provided by the largest crowdfunding platform in Israel. Complementary data were collected from interviews with the chief executive officers (CEOs) of two leading rewards and donations platforms in Israel and from the contents of the pages of crowdfunding campaigns. A four-stage process of content analysis was applied.FindingsNovice and serial crowdfunders follow different logics. While novice crowdfunders’ motivations and behavior can mostly be explained by the theory of planned behavior (TPB) and follow a more rational process, serial crowdfunders’ motivations and behavior are guided by aspects of well-being.Originality/valueThe findings show that the more rational process described by the TPB and the dimensions of well-being interacts in a circular way to motivate serial operations by crowdfunders. Well-being is also manifested in the maintenance of social ties and the development of social capital, which are crucial for serial entrepreneurs.

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The emergence of well-being in crowdfunding: a study of entrepreneurs and backers of reward and donation campaigns

Cited by 20 publications

References 65 publications

A quantitative study on crowdfunders' motivations, their sense of meaning and social welfare

A quantitative study on crowdfunders' motivations, their sense of meaning and social welfare

Empirical Analysis of the Global Supply and Demand of Entrepreneurial Finance: A Random Utility Theory Perspective

The transition from novice to serial crowdfunders: behavioral antecedents and well-being drivers

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