Dynamics between Digital Visibility through Social Media Marketing and Crowdfunding: Path to Succeed in Entrepreneurship
Abstract
Digital visibility through social media marketing has played a colossal role in the realm of entrepreneurship and fund-raising. Strong positive dynamics between social media marketing and crowd-funding has the impending to decipher demand-supply gap of fundraising at the pre-seed stage. In this study, we explore the relationship between usage of social media and awareness of crowd-funding as a viable option for raising pre-seed capital in an emerging market of India which has witnessed the exponential growth of start-up companies and entrepreneurship in the past few years. The results of the study suggest that awareness of different options of crowdfunding for raising pre-seed capital is strongly correlated with the effective usage of social media platforms by the organizations. From an organization’s perspective, it has been found that effective use of Social Media platforms increases with the duration involved in social media platforms. The results of the study give a perspective for all entrepreneurs, fundraisers, and start-up companies that how digital visibility through social media marketing can unravel the problem of crowd-funding. With a growing trend of today’s youth using social media marketing worldwide, the strong dynamics between crowd-funding and social media marketing is expected to breed exponentially in terms of their contribution to the economy, wealth generation, and job creation.
References
Agrawal, A., Catalini, C., & Goldfarb, A. (2013). Some simple economics of crowd funding (NBER Working Paper No. w19133). Retrieved August 6, 2020, from http://www.nber.org/papers/w19133
Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2014). Crowdfunding in a pro social micro lending environment: Examining the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice, 39(1), 53-73.
Andreas,W., Merete, H., & Kalanit, E. (2019). It Is Not All About Money: Obtaining Additional Benefits Through Equity Crowdfunding, The Journal of Entrepreneurship, 28(2), 270-294.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2010). Crowdfunding: An industrial organization perspective. Prepared for the Workshop Digital Business Models: Understanding Strategies, Paris, June 2010.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2013). Crowdfunding: Tapping the right crowd. Journal of Business Venturing, 29(5), 585–609.
Bawre, S., & Kar, S. (2019). Social media and financial institutions in the Indian context. International Journal of Economics and Business Research, 18(3), 343-355.
Berkovich, E. (2011). Search and herding effects in peer-to-peer lending: Evidence from prosper.com. Annals of Finance, 7(3), 389–405.
Buttice, V., Colombo, M. G., & Wright, M. (2017). Serial crowdfunding, social capital, and project success. Entrepreneurship Theory and Practice, 41(2), 183–207.
Block, J., Vries, G. D., Schumann, J., & Sandner, P. (2013). Trademarks and venture capital valuation. Journal of Business Venturing, 29(4), 525–542.
Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research, 24(3), 499–519. Retrieved from http://pubsonline.informs.org/doi/abs/ 10.1287/isre.1120.0468
Choy, K., & Schlagwein, D. (2016). Crowdsourcing for a better world: On the relation between IT affordances and donor motivations in charitable crowdfunding. Information Technology & People, 29(1), 221–247.
Dominik, D., Nikolaus L., Philipp., & Jan, M. (2020). The potential of collective intelligence and crowdsourcing for opportunity creation. International Journal of Entrepreneurial Venturing. 12(2).
Everett, C. (2010). Group membership, relationship banking and loan default risk: The case of online social lending (SSRN Working Paper No. 1114428).
Economic Survey. (2019). Retrieved from https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
Gerber, E. M., Hui, J. S., & Kuo, P. Y. (2012). Crowdfunding: Why people are motivated to post and fund projects on crowdfunding platforms. Proceedings of the international workshop on design, influence, and social technologies: Techniques, impacts and ethics. Vol. 2. (pp. 10). IL: Northwestern University Evanston No. 11.
Hekman, E., & Brussee, R. (2013). Crowdfunding and online social networks. Retrieved May 15, 2018, ttp://www2.mmu.ac.uk/media/mmuacuk/content/documents/carpe/2013-conference/papers/entrepreneurship/Erik Hekman, Rogier Brussee.pdf
Heminway, J. (2014). Investor and market protection in the crowd funding era: Disclosing to and for the ‘Crowd’. Vermont Law Review, 38, 827–848. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2435757
Kleemann, F., Vob, G. G., & Rieder, K. (2008). Un(der)paid Innovators: The Commericial Utilization of Consumer Work through Crowdsourcing. Science, Technology and Innovation Studies, 5-26.
Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53(1), 59-68.
Lynda, Y., & Black, S. L. (2018). US Equity Crowdfunding: A Review of Current Legislation and A Conceptual Model of the Implications for Equity Funding. The Journal of Entrepreneurship, 27(1), 83-110.
Mihardjo, L. W. W., Sasmoko, Alamsjah, F., & Elidjen. (2019). Digital transformation: a transformational performance-based conceptual model through co-creation strategy and business model innovation in the Industry 4.0 in Indonesia. International Journal of Economics and Business Research, 18(3), 369-386.
Mollick, E. (2013). Swept away by the crowd? Crowdfunding, venture capital, and the selection of entrepreneurs (SSRN Working Paper No. 2239204). Retrieved April 10, 2019, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2239204
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29(1), 1–16.
Mollick, E., & Nanda, R. (2016). Wisdom or madness? Comparing crowds with expert evaluation in funding the arts. Management Science, 62(6), 1533-1553.
Mollick, E., & Kuppuswamy, V. (2014). After the campaign: Outcomes of crowdfunding (UNC Kenan-Flagler Research Paper No. 2376997).
Robiady, N. D., Windasari, N. A., & Nita, A. (2020). Customer engagement in online social crowdfunding: The influence of storytelling technique on donation performance. International Journal of Research in Marketing.
Copyright (c) 2020 Girish G P, Seeboli Ghosh
This work is licensed under a Creative Commons Attribution 4.0 International License.
