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Crowdfunding Social Entrepreneurship
Uppsala University, Disciplinary Domain of Science and Technology, Earth Sciences, Department of Earth Sciences.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

In crowdfunding, funders often have very little or no information about the social entrepreneur and the venture. This asymmetric information hinders funding in that potential funders only make a pledge if they can trust the entrepreneur and the seriousness of the project. Thus entrepreneurs have to signal information to potential funders. In the case of conventional ventures, this means showing that the company is committed to the financial returns or the quality of the product, for instance. However, in the case of social enterprises, entrepreneurs can signal their commitment to a social or an environmental challenge. The information that entrepreneurs want to convey to potential funders depends very much on the type of crowdfunding. The type of crowdfunding determines whether the entrepreneur is pitching to potential investors, lenders or potential consumers and general supporters of the project. While investors tend to be more concerned with the financial returns, the quality of the product or service tends to be the variable that matters most to the potential consumer. This thesis examines the crowdfunding campaigns of social ventures in order to understand how to crowdfund social enterprises. It identifies the signals with which, social entrepreneurs try to attract funding through different types of crowdfunding, mainly reward-based. It finds that reward-based crowdfunding offers a good basis for social entrepreneurs to attract funding by advertising and signaling their commitment to social or environmental issues. This is all the more true when the social enterprise seeking to be crowdfunded only aims to be financially autonomous and thus cannot offer attractive financial returns to potential investors.

Place, publisher, year, edition, pages
2015. , 25 p.
Examensarbete vid Institutionen för geovetenskaper, ISSN 1650-6553 ; 229
Keyword [en]
Crowdfunding, Social entrepreneurship, Social enterprise, Social venture, reward-based crowdfunding, Sustainable development.
National Category
Earth and Related Environmental Sciences
URN: urn:nbn:se:uu:diva-259230OAI: diva2:843692
Subject / course
Sustainable development
Educational program
Master Programme in Sustainable Development
2015-06-02, Geocentrum, Villavägen 16, Uppsala, Uppsala, 09:30 (English)
Available from: 2015-07-31 Created: 2015-07-30 Last updated: 2015-07-31Bibliographically approved

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