Crowdfunding: Motives, Definitions, Typology and Ethical Challenges

Abstract

Crowdfunding is an emerging phenomenon that has attracted significant interest from scholars and practitioners alike, mainly due to its appeal as an alternative source of funding. As crowdfunding has grown exponentially, so have the associated challenges and opportunities. In this conceptual paper, we define crowdfunding; discuss its characteristics, related terminologies, key elements and ethical issues. We also propose a typology for crowdfunding and indicate various issues associated with it. The final section includes the implications of this study and suggestions for future research. This paper aims to inspire a scholarly debate and further develop the theoretical foundation of the crowdfunding literature. This may also prompt practitioners to take note of the emerging concerns as the crowdfunding phenomenon is transforming from a marginal to a mainstream discipline.

Crowdfunding: An Exploratory Study on Knowledge, Benefits and Barriers Perceived by Young Potential Entrepreneurs

“…Empirical research shows that the presentation of prototypes of the future product on the website or the insertion of detailed text descriptions, pictures, graphics and other relevant features of the products offered influence positively the success of crowdfunding campaigns Siering 2015, 2019;Hobbs et al 2016;Kaartemo 2017;Hossain and Oparaocha 2017).…”

Filmmaking and Crowdfunding: A Right Match?

“…The items included in the questionnaire represent the result of distillation and synthesis of the literature review, especially concerning the types of rewards, the main benefits of using crowdfunding, the main barriers to its development and the main factors to take into account when creating a filmmaking crowdfunding campaign [6,7,12,[20][21][22][23]28,29,32,[37][38][39][40][41][42][43][44]. Therefore, the questionnaire has a solid scientific basis, building on the extant literature review and theoretical approaches.…”

“…Furthermore, it finances activities, ideas or projects based on a call for finance launched via Web 2.0 technologies. As a result, contributors donate, pre-order products, lend or invest, being motivated by the project itself or the project initiator's promise, being or not rewarded for such contribution [12]. A more detailed description of crowdfunding involves the following aspects:…”

“…It is a suitable financing method for start-up companies that are not eligible for traditional financing • It implies using the Internet and social media influence, which generate audiences • It is a marketing channel through which entrepreneurs gain visibility, diversifying communication possibilities • It supports entrepreneurs in testing their ideas or concepts with the participation of the community • It facilitates direct involvement with the community and the consumers [12].…”

Money and finance:Ethical considerations

“…For critical perspectives on this form of investing, see Entine (2005). 29 Hossain and Oparaocha (2015) analyze the ethical problems of crowdfunding. 30 There are many studies on the ethical issues of microfinance, in relation to its pioneering role in the economy and the promotion of development, such as Argandoña (2010) and Schmidt (2012). from the creation of microenterprises to more general consumer credit, in competition with commercial banks.…”