Crowdfunding External Feedback, Social Responsibility, and New Venture Success

One of the challenges of a social entrepreneur is to create a large-scale change (McMullen, 2011). To implement those changes, some researchers and social entrepreneurs see wealth as a means to an end (Dees, 1998), others believe that for-profit enterprises can make a significant impact (Peredo & McLean, 2006). In this novel pursuit, founders of new ventures and investors are increasingly relying on crowdfunding—method of gathering capital from a large pool of interested investors—which creates an ideal scenario to study new ventures behavior (Short, Ketchen, McKenny, Allison, & Ireland, 2017). Crowdfunding platforms offer not only the financial capital benefits but also a sense community, a belief in trust and reciprocity, and emotional connection (Butticè, Colombo, & Wright, 2017). In this paper, we use crowdfunding campaigns to examine the impact of external feedback on new ventures’ emphasis on social responsibility and subsequent commercialization. This external feedback is a critical mechanism in influencing subsequent venture outcome, thus understanding it allows entrepreneurs to strategically craft the message to the venture’s stakeholders with the goal of creating, influence, and maintain the new venture's social mission.

  • Conference: 15th Annual Social Entrepreneurship Conference
  • Location: Los Angeles, CA
  • Keywords: Sharing Economy, Crowdfunding