IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v8y2022i1d10.1186_s43093-022-00121-z.html
   My bibliography  Save this article

Determinants and preferences for a crowdfunding project

Author

Listed:
  • Mohammad Tariqul Islam Khan

    (Multimedia University)

Abstract

This paper aims to investigate what determines young working individuals’ willingness to fund a crowdfunding project, and their preferences for a crowdfunding model (e.g. debt-based crowdfunding or equity-based crowdfunding). Using a survey dataset (n = 297) from an emerging country where crowdfunding is gaining popularity, the results demonstrate that an easy investment process, which is viewed as perceived development and innovation of crowdfunding, and financial training cause young working individuals’ higher willingness to invest in a crowdfunding project, whereas perceived risk involved with a crowdfunding project reduces the willingness to fund a crowdfunding project. With regard to the preference for a crowdfunding model, the results show that managing a bank account is positively related to the likelihood of investment in debt-based crowdfunding model. The findings provide implications for crowdfunding investors, project founders, and policy makers.

Suggested Citation

  • Mohammad Tariqul Islam Khan, 2022. "Determinants and preferences for a crowdfunding project," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
  • Handle: RePEc:spr:futbus:v:8:y:2022:i:1:d:10.1186_s43093-022-00121-z
    DOI: 10.1186/s43093-022-00121-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-022-00121-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1186/s43093-022-00121-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Ian Carlin & David T. Robinson, 2012. "What Does Financial Literacy Training Teach Us?," The Journal of Economic Education, Taylor & Francis Journals, vol. 43(3), pages 235-247, July.
    2. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    3. Renwick, Matthew J. & Mossialos, Elias, 2017. "Crowdfunding our health: Economic risks and benefits," Social Science & Medicine, Elsevier, vol. 191(C), pages 48-56.
    4. Thomas H. Allison & Blakley C. Davis & Jeremy C. Short & Justin W. Webb, 2015. "Crowdfunding in a Prosocial Microlending Environment: Examining the Role of Intrinsic versus Extrinsic Cues," Entrepreneurship Theory and Practice, , vol. 39(1), pages 53-73, January.
    5. Magdalena Cholakova & Bart Clarysse, 2015. "Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward–Based Investments?," Entrepreneurship Theory and Practice, , vol. 39(1), pages 145-172, January.
    6. Chong, Lee-Lee & Ong, Hway-Boon & Tan, Siow-Hooi, 2021. "Acceptability of mobile stock trading application: A study of young investors in Malaysia," Technology in Society, Elsevier, vol. 64(C).
    7. Alegre, Inés & Moleskis, Melina, 2016. "Crowdfunding: A Review and Research Agenda," IESE Research Papers D/1142, IESE Business School.
    8. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    9. Gitanjali Sen & Sankar De, 2018. "How Much Does Having a Bank Account Help the Poor?," Journal of Development Studies, Taylor & Francis Journals, vol. 54(9), pages 1551-1571, September.
    10. Kibum Kwon, 2019. "The long-term effect of training and development investment on financial performance in Korean companies," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(6), pages 1092-1109, January.
    11. Prystav, Fabian, 2016. "Personal information in peer-to-peer loan applications: Is less more?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 9(C), pages 6-19.
    12. Sadia Anjum, 2020. "Impact of internship programs on professional and personal development of business students: a case study from Pakistan," Future Business Journal, Springer, vol. 6(1), pages 1-13, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bourcet, Clémence & Bovari, Emmanuel, 2020. "Exploring citizens' decision to crowdfund renewable energy projects: Quantitative evidence from France," Energy Economics, Elsevier, vol. 88(C).
    2. Veronica Crescenzo & Angelo Bonfanti & Paola Castellani & Alfonso Vargas-Sánchez, 2022. "Effective entrepreneurial narrative design in reward crowdfunding campaigns for social ventures," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 773-800, June.
    3. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    4. Ferretti, Riccardo & Venturelli, Valeria & Pedrazzoli, Alessia, 2021. "Do multiple competing offerings on a crowdfunding platform influence investment behavior?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    5. Fang, Xing, 2022. "Why we hide good deeds? The selfless and anonymous donation behavior in crowdfunding," Technology in Society, Elsevier, vol. 71(C).
    6. Nathalie Duran, 2016. "Le crowdlending : une opportunité de mission originale pour l'expert-comptable ?," Post-Print hal-01900572, HAL.
    7. Allison, Thomas H. & Davis, Blakley C. & Webb, Justin W. & Short, Jeremy C., 2017. "Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance," Journal of Business Venturing, Elsevier, vol. 32(6), pages 707-725.
    8. Etienne Schraven & Elco van Burg & Marco van Gelderen & Enno Masurel, 2020. "Predictions of Crowdfunding Campaign Success: The Influence of First Impressions on Accuracy and Positivity," JRFM, MDPI, vol. 13(12), pages 1-16, December.
    9. Hadar Gafni & Marek Hudon & Anaïs Périlleux, 2021. "Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms," Journal of Business Ethics, Springer, vol. 173(4), pages 777-793, November.
    10. Skare, Marinko & Gavurova, Beata & Polishchuk, Volodymyr, 2023. "A decision-making support model for financing start-up projects by venture capital funds on a crowdfunding platform," Journal of Business Research, Elsevier, vol. 158(C).
    11. Matthew Josefy & Thomas J. Dean & Lumina S. Albert & Markus A. Fitza, 2017. "The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theaterâ€," Entrepreneurship Theory and Practice, , vol. 41(2), pages 161-182, March.
    12. Friedemann Polzin & Helen Toxopeus & Erik Stam, 2018. "The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders," Small Business Economics, Springer, vol. 50(2), pages 251-273, February.
    13. Nathalie Duran, 2016. "Le crowdlending, une opportunité de mission originale pour l'expert comptable ?," Post-Print hal-01651395, HAL.
    14. Butticè, Vincenzo & Di Pietro, Francesca & Tenca, Francesca, 2020. "Is equity crowdfunding always good? Deal structure and the attraction of venture capital investors," Journal of Corporate Finance, Elsevier, vol. 65(C).
    15. Will Drover & Matthew S. Wood & Andrew Zacharakis, 2017. "Attributes of Angel and Crowdfunded Investments as Determinants of VC Screening Decisions," Entrepreneurship Theory and Practice, , vol. 41(3), pages 323-347, May.
    16. Daniela Defazio & Chiara Franzoni & Cristina Rossi-Lamastra, 2021. "How Pro-social Framing Affects the Success of Crowdfunding Projects: The Role of Emphasis and Information Crowdedness," Journal of Business Ethics, Springer, vol. 171(2), pages 357-378, June.
    17. Nakagawa, Koichi & Kosaka, Genjiro, 2022. "What social issues do people invest in? An examination based on the empathy–altruism hypothesis of prosocial crowdfunding platforms," Technovation, Elsevier, vol. 114(C).
    18. Shneor, Rotem & Munim, Ziaul Haque, 2019. "Reward crowdfunding contribution as planned behaviour: An extended framework," Journal of Business Research, Elsevier, vol. 103(C), pages 56-70.
    19. Felipe, Israel José dos Santos & Mendes-Da-Silva, Wesley & Leal, Cristiana Cerqueira & Braun Santos, Danilo, 2022. "Reward crowdfunding campaigns: Time-to-success analysis," Journal of Business Research, Elsevier, vol. 138(C), pages 214-228.
    20. Bagheri, Afsaneh & Chitsazan, Hasti & Ebrahimi, Ashkan, 2019. "Crowdfunding motivations: A focus on donors' perspectives," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 218-232.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:futbus:v:8:y:2022:i:1:d:10.1186_s43093-022-00121-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.