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Crowdfunding cultural and commercial entrepreneurs: an empirical study on motivation in distinct backer communities

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  • Tobias Bürger

    (University of Wuppertal)

  • Simon Kleinert

    (Maastricht University)

Abstract

Drawing on self-determination theory (SDT), this study examines differences in the motivation of backers to support cultural and commercial entrepreneurs through reward crowdfunding. We propose that backers of commercial campaigns are a community of early-customers motivated by the prospects of attractive product offerings, while backers of cultural projects constitute a distinct community motivated to support capital-constrained cultural entrepreneurs and connect with like-minded individuals. We use data from the largest German crowdfunding platform, Startnext, and analyze 2334 rewards from 225 cultural and commercial projects. Our results provide support for our hypotheses: Rewards involving price discounts matter particularly for backers of commercial projects and rewards that engage backers with their community matter more for cultural backers. Surprisingly, however, backers of cultural projects are not altruistic; they are no more likely than commercial backers to support campaigns selflessly in response to symbolic rewards.

Suggested Citation

  • Tobias Bürger & Simon Kleinert, 2021. "Crowdfunding cultural and commercial entrepreneurs: an empirical study on motivation in distinct backer communities," Small Business Economics, Springer, vol. 57(2), pages 667-683, August.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:2:d:10.1007_s11187-020-00419-8
    DOI: 10.1007/s11187-020-00419-8
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    Cited by:

    1. Fang, Xing, 2022. "Why we hide good deeds? The selfless and anonymous donation behavior in crowdfunding," Technology in Society, Elsevier, vol. 71(C).
    2. Li, Liangqiang & Yang, Liang & Zhao, Meng & Liao, Miyan & Cao, Yunzhong, 2022. "Exploring the success determinants of crowdfunding for cultural and creative projects: An empirical study based on signal theory," Technology in Society, Elsevier, vol. 70(C).
    3. Szczepan KoÅ›ciółek, 2022. "Heterogeneity of motivations among crowdinvestors: Evidence from the football industry," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(4), pages 157-183.
    4. Alexandra Mora-Cruz & Pedro R. Palos-Sanchez, 2023. "Crowdfunding platforms: a systematic literature review and a bibliometric analysis," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1257-1288, September.

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