Panel Paper:
Does Crowdfunding Benefit Social Entrepreneurship?
*Names in bold indicate Presenter
In this study, we focus on Indiegogo as a case study. We first retrieved data by using the web-crawling technique from the Indiegogo website. We carefully recorded each project in detail including its category, main campaign message, whether it was successfully funded or not, etc. The study finds that commercial projects led by new technological products have higher support rates than community-based projects. In other words, projects with social causes do not have as much support as commercial projects on the crowdfunding platform. We then randomly selected 100 community projects from the dataset and used textual analysis to look into their fund-raising campaigns in detail. The study finds that friends and families’ initial investment in the crowdfunding plays a critical role in determining whether the fund-raising will be successful or not. Put differently, it may be more challenging for people with lower social economic status to accomplish their projects with social causes. This paper ends with clear policy implications.