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International Entrepreneurship and Management Journal

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14-01-2022

Effective entrepreneurial narrative design in reward crowdfunding campaigns for social ventures

Authors: Veronica De Crescenzo, Angelo Bonfanti, Paola Castellani, Alfonso Vargas-Sánchez

Published in: International Entrepreneurship and Management Journal | Issue 2/2022

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Abstract

One of the most important challenges for social venture entrepreneurs is acquiring resources. Reward crowdfunding is considered a suitable tool for meeting the financing needs of social ventures, whose backers are particularly interested in firm ideas and core values rather than in collaterals or business plans. A strategic factor that is able to influence the outcome of crowdfunding campaigns is the entrepreneurial narrative. Very few scholars have examined the key factors that support a crowdfunding campaign, particularly those on reward-based crowdfunding platforms, and the effects of entrepreneurial narratives on investors’ decisions. Aiming to fill this research gap, this paper investigates how entrepreneurs in the technology industry describe their social ventures and projects on Eppela, an Italian reward-based crowdfunding platform. Thematic analysis was applied to detect the five following key factors of effective entrepreneurial narratives in reward-based crowdfunding campaigns for social ventures: 1) problem/need; 2) project; 3) product; 4) team; and 5) venture. Each key factor includes specific subfactors. Lexical data analysis was then performed to identify the following expected effects of the examined entrepreneurial narratives on potential investors, leading these investors to understand, trust, and approve the project proposal, and thus, finance the social venture’s project: 1) reassurance, 2) reliability, and 3) credibility. Based on these results, this study proposes an explanatory model about how to design effective entrepreneurial narratives to be presented to contribute as much as possible to the success of projects in crowdfunding platforms.

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Title: Effective entrepreneurial narrative design in reward crowdfunding campaigns for social ventures
Authors: Veronica De Crescenzo
Angelo Bonfanti
Paola Castellani
Alfonso Vargas-Sánchez
Publication date: 14-01-2022
Publisher: Springer US
Published in: International Entrepreneurship and Management Journal / Issue 2/2022
Print ISSN: 1554-7191
Electronic ISSN: 1555-1938
DOI: https://doi.org/10.1007/s11365-021-00774-2

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