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The narcissism of crowdfunding entrepreneurs

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  • Helen Bollaert

    (SKEMA Business School–Université Côte d’Azur)

  • Gaël Leboeuf

    (Université Lumière Lyon 2)

  • Armin Schwienbacher

    (SKEMA Business School–Université Côte d’Azur)

Abstract

Social networks and personality traits of the entrepreneur affect investors’ willingness to finance start-ups, particularly in reward-based crowdfunding where observable individual characteristics are paramount. We study the impact of crowdfunding entrepreneurs’ narcissism on campaign design and campaign outcome. We distinguish between the ego-defensive behavior and grandiose/arrogant behavior of narcissists in the hypotheses for campaign design. We find that more narcissistic crowdfunding entrepreneurs set less ambitious goals and longer campaign durations, consistent with ego-defensive behavior. We further document that more narcissistic entrepreneurs are less successful than other entrepreneurs, suggesting that crowdfunders recognize the narcissistic tendencies of entrepreneurs and are more reluctant to support them. Our results are consistent with recent conceptual research, suggesting that there are specific effects of narcissism in the early-stage entrepreneurial context.

Suggested Citation

  • Helen Bollaert & Gaël Leboeuf & Armin Schwienbacher, 2020. "The narcissism of crowdfunding entrepreneurs," Small Business Economics, Springer, vol. 55(1), pages 57-76, June.
    • Handle: RePEc:kap:sbusec:v:55:y:2020:i:1:d:10.1007_s11187-019-00145-w
    DOI: 10.1007/s11187-019-00145-w
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    7. Alsagr, Naif & Cumming, Douglas J. & Davis, Justin G. & Sewaid, Ahmed, 2023. "Geopolitical risk and crowdfunding performance," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).
    8. Kraft, Priscilla S. & Günther, Christina & Kammerlander, Nadine H. & Lampe, Jan, 2022. "Overconfidence and entrepreneurship: A meta-analysis of different types of overconfidence in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 37(4).
    9. Filippo Marchesani & Francesca Masciarelli, 2022. "Crowdfunding as Entrepreneurial Investment: The Role of Local Knowledge Spillover," Papers 2211.16984, arXiv.org.
    10. Junjuan Du, 2023. "Impact of project information disclosure on backers' investment intensity in reward-based crowdfunding: Evidence from agri-food crowdfunding in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 427-435.
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    17. Myung Ja Kim & C. Michael Hall & Heejeong Han, 2021. "Behavioral Influences on Crowdfunding SDG Initiatives: The Importance of Personality and Subjective Well-Being," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    18. Wu, Wenqing & Wang, Hongxin & Wang, Xinchun, 2022. "Entrepreneur narcissism and new venture performance: A learning perspective," Journal of Business Research, Elsevier, vol. 149(C), pages 901-915.
    19. Junjuan Du, . "Impact of project information disclosure on backers' investment intensity in reward-based crowdfunding: Evidence from agri-food crowdfunding in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    20. Janina Sundermeier & Tyge-F. Kummer, 2022. "Does personality still matter in e-commerce? How perceived hubris influences the assessment of founders’ trustworthiness using the example of reward-based crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1127-1144, September.
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