ArticlePDF Available


Content may be subject to copyright.
10 Kickstart or jumpstart? Understanding
women entrepreneurs’ crowdfunding
Smita Srivastava, Pyayt P. Oo, Arvin Sahaym and Thomas H. Allison*
We have just about seven years of experience now in crowdfunding [in the United
States], including equity and debt, and about four years in the United Kingdom. And we
have, by some estimates, $33 billion worth of funding across equity, debt, and rewards
(Jason Best, Principal of Crowdfund Capital Advisors, CCA, 2016, quoted in Assenova et
al., 2016)
Female-owned businesses and their survival prospects have been a topic of discus-
sion for a considerable number of researchers (Jennings and Brush, 2013; Justo et
al., 2015; Klapper and Parker, 2011). Prior research has identied several possibili-
ties for the disproportionate failure of female-founded ventures: lack of access to
nancial resources (for example, funding) (Fairlie and Robb, 2009), prior manage-
rial and employment experience (Boden and Nucci, 2000; DeTienne and Chandler,
2007), founding strategy (Carter et al., 1997) and entrepreneurial condence (that
is, self-ecacy) (Bandura, 1997; Wilson et al., 2007). While it is possible that lack
of prior managerial and employment experience can be compensated by train-
ing, condence and nancial resources have fewer obvious solutions (Honig, 1998;
Wilson et al., 2007). e recent revolution in funding new ventures embodied by
crowdfunding is one potential remedy. In this chapter, we focus on how condence
plays a role in fundraising attempts by women entrepreneurs on a crowdfunding
A broad consensushasemergedamongresearchers and practitioners that crowd-
funding has already established itself as an important method for raising capital
(Assenova et al., 2016; Oo and Allison, 2015). Crowdfunding involves nascent
entrepreneurs making public calls for funding via the Internet, and potential capi-
tal providers evaluating those calls and making decisions for nancing their pro-
jects (Belleamme et al., 2014; Bruton et al., 2015). Crowdfunding entrepreneurs
typically campaign for their projects and make ‘an open call, mostly through the
Internet, for providing nancial resources either in the form of a donation or
in exchange for the future product or some form of reward’ (Belleamme et al.,
Colombo et al. (2015) note that prior research has mostly discussed the nature,
characteristics and success factors of crowdfunding. For example, scholars have
tried to discern this phenomenon from other lending mechanisms such as online
charity donations, peer-to-peer lending and microlending (Afuah and Tucci, 2012;
Hildebrand et al., 2016; Zhang and Liu, 2012). As with microlending, a particular
appeal of crowdfunding is the access to capital it provides women seeking to start
or grow a venture (Bruton et al., 2011; Marom et al., 2014). As such, a growing set of
research is examining how women-led crowdfunding projects perform (Greenberg
and Mollick, 2017; Marom et al., 2014).
As with crowdfunding research in general, much of this early research on women-
led crowdfunding projects has been descriptive. us, there is an opportunity to
draw from theories previously applied to entrepreneurial resource acquisition
research in order to close the gap between what we know about the determinants of
women’s crowdfunding outcomes, and what we need to know about this phenom-
enon. To do this, we explore how a project creator’s gender, her entrepreneurial
self-ecacy and prior experience inuence her crowdfunding performance. is
question is particularly deserving of a focused inquiry, since about 40 percent of
rms in the United States are founded by women but only 6 percent of the women
founders get funding from investors (Greenberg and Mollick, 2017). Interestingly,
about 44 percent of the crowdfunders are women (Marom et al., 2014).
We address these issues through an examination of a sample of 197 woman-led
projects on the Kickstarter platform. Kickstarter, a rewards-based crowdfund-
ing platform, is the world’s largest with more than 100,000 ventures
successfully funded and more than US$2.2 billion in deal-flow. Our results
support our theory (Figure 10.1) that the entrepreneurial self-efficacy,
entrepreneurial passion and prior experience of women entrepreneurs are
associated with their projects’ crowd-funding performance. This chapter makes
the following three key contributions to the theory and practice. First, we
contribute to theory-building on crowdfunding by highlighting psychosocial
factors that could influence women entrepreneurs’ crowdfunding success.
Second, this is one of the first studies to discuss the role of entrepreneurial self-
efficacy in crowdfunding performance. Third, for practition-ers, our results
suggest that crowdfunding is a promising source of capital for women
entrepreneurs as the likelihood of success is relatively higher, compared to
seeking funds from traditional sources of funding, such as venture capitalists
Theoretical background and hypotheses
Entrepreneurial self-efficacy and crowdfunding performance
McGee et al. (2009: 965) dene entrepreneurial self-ecacy (ESE) as a construct
‘that measures a person’s belief in their ability to successfully launch an entrepre-
neurial venture’. In our context, entrepreneurial self-ecacy reects a woman pro-
ject creator’s self-condence in searching for product ideas, planning for market,
motivating stakeholders, and managing human as well as nancial resources.
Entrepreneurial self-ecacy inuences the level of interest in founding a venture
which is a challenging goal in itself, persistence toward the achievement of this
goal, and recovering quickly from failure over the course of venture (Bandura, 1997;
Chen et al., 1998; McGee et al., 2009). Entrepreneurial self-ecacy also determines
levels of commitment, in terms of time and resources, needed for the search of
novel opportunities (Cassar and Friedman, 2009).
Prior research has shown that traditional nancers ‒ that is, angels, VCs and
nancial institutions ‒ make their funding decisions based on a venture’s ideas
and opportunities, founder and team characteristics, market conditions, venture
resource endowments, and their intuition (Chen et al., 2009; Robinson, 1988).
Entrepreneurial self-ecacy not only reects self-belief and condence but also
helps in the improvisation of ideas and strategies that inuence venture perfor-
mance (Hmieleski and Corbett, 2008). As such, there is ample reason to expect
entrepreneurial self-ecacy to inuence fundraising outcomes. Some research has
reported that women have lower levels of self-ecacy (Gatewood et al., 1995). is
makes examining women crowdfunders’ entrepreneurial self-ecacy even more
important since, though there is a theoretical basis for expecting an eect, it is
unknown whether a women-only study context will yield results at variance with
established theory.
Displays of higher levels of self-ecacy send positive signals of condence, self-
belief, persistence and potential for future performance (Gatewood et al., 1995;
Hmieleski and Baron, 2008). Because the behavioral characteristics of belief, con-
Prior Industry
Figure 10.1 Theoretical model on performance of women entrepreneurs in crowdfunding
dence and commitment have a bearing on the eective management of a project
and ultimately the project’s success (Gatewood et al., 1995; Hmieleski and Baron,
2008; Hmieleski and Corbett, 2008), we argue that higher levels of displayed entre-
preneurial self-ecacy will lead potential funders to be more likely to provide
capital. Formally:
Hypothesis 1: Entrepreneurial self-ecacy of women entrepreneurs is positively asso-
ciated with their crowdfunding performance.
Entrepreneurial passion and crowdfunding performance
Entrepreneurial passion reects ‘consciously accessible intense positive feelings
experienced by engagement in entrepreneurial activities associated with roles that
are meaningful and salient to the self-identity of the entrepreneur’ (Cardon et
al., 2009: 517). On a platform like Kickstarter, crowdfunding entrepreneurial nar-
ratives will be embedded with information about passion (Allison et al., 2013).
Passion about the crowdfunding project is reected through explicit and implicit
cues including facial expressions, vocal intonation, gestures and animated body
language (Cardon et al., 2009; Chen et al., 2009).
Prior research has shown that lenders such as venture capitalists often base a part
of their funding decision on the technical, personal and interpersonal characteris-
tics of the entrepreneur. Passion is one of key attributes they look for (Cardon et
al., 2009; Chen et al., 2009). A key reason is that passionate entrepreneurs are more
committed, better prepared and more knowledgeable about their projects (Chen
et al., 2009). ey are strongly inclined toward the activities they like and nd
important, and will invest their time and energy to make these activities successful
(Vallerand et al., 2003). Entrepreneurs who are passionate about their project signal
that they are intensely committed to their project; that they are motivated to build
the venture (Chen et al., 2009). For these reasons, prior work has associated passion
with overall performance (Cardon et al., 2009; Lerner et al., 1997). We extend this
logic and propose that the same eects will also impact fundraising performance on
crowdfunding platforms:
Hypothesis 2: Entrepreneurial passion of women entrepreneurs is positively associ-
ated with their crowdfunding performance.
Prior industry experience and crowdfunding performance
Next, we discuss the role of women entrepreneurs’ prior industry experience on
crowdfunding performance. Prior industry experience provides entrepreneurs with
a better understanding of the key constituents and stakeholders in the product
market (for example, competitors, active investors, potential employees, suppliers,
and so on) which helps them not only in their pitching for the projects but also
in their project’s long-term success (Dobrev and Barnett, 2005; Shane and Stuart,
2002). Indeed, prior industry experience is built on hands-on practical training
and rst-hand learning about the technology, stakeholders and product market
(Davidsson and Honig, 2003). Delmar and Shane (2006) note that:
much of the relevant knowledge about creating a new company is learned by doing . . .
experience provides tacit knowledge of organizing routines and skills that have already
been learned from their prior activities, and which can be transferred to the new
venture. . . it provides tacit knowledge about how to run a new rm that has been learned
from prior mistakes [and] previously encountered the problems. (ibid.: 222)
We believe that women entrepreneurs’ prior industry experience will help them in
identifying both core and peripheral needs of customers. is will lead to discover-
ing associated opportunities (Kotha and George, 2012).
Although ndings are robust about entrepreneurs’ prior industry experience and
investment from formal sources, research has yet to examine the role of prior indus-
try experience in the context of women entrepreneurs’ crowdfunding performance.
Prior research has demonstrated that traditional investors such as VCs use prior
industry experience as a key consideration in their funding decisions (Franke et
al., 2008). We build on the ndings that ventures founded by entrepreneurs with
prior industry experience are more likely to secure VC funding as they show higher
growth rate and overall performance (Rauch et al., 2005; Shane and Stuart, 2002).
We believe that potential backers’ decision-making behavior will parallel that of tra-
ditional investors. We expect that crowdfunding backers will also react positively to
prior industry experience, as it is associated with knowledge, capabilities, legitimacy,
access to social networks and higher venture quality. As such, we hypothesize the
Hypothesis 3: Prior experience of women entrepreneurs in related industry is posi-
tively associated with their crowdfunding performance.
Sample and data collection
We drew our sample from Kickstarter, the largest crowdfunding site in the world.
We selected a random sample of female-led projects from three categories: gaming,
technology and product design. ese industry categories were chosen because
most projects in these categories are similar to traditional new ventures (Mollick
and Kuppuswamy, 2014). ere were two additional sampling criteria. First, we
only included crowdfunding projects on behalf of individual entrepreneurs, rather
than organizations. Second, we only included projects which had videos in which
the entrepreneur was clearly shown. ese criteria allow us to develop a sample
of only woman-led crowdfunding projects, while also providing the data neces-
sary to code entrepreneurial passion. e nal sample consisted of 197 women-led
crowdfunding projects.
Among the three product categories, 108 projects (54 percent) were from prod-
uct design, 51 (20 percent) were from gaming, and 38 (26 percent) were from
technology. The campaigns occurred during the period 2009‒2013. The
projects requested a mean funding amount of US$21,576. The overall success
rate is 78 percent, which is relatively high compared to the Kickstarter average
reported by Mollick (2014): 48 percent. This higher average success rate likely
reflects the positive effect on crowdfunding performance of having a video
(Mollick, 2014), and the higher chance of succeeding in crowdfunding that
women have compared to men (Marom et al., 2015).
Following prior studies (Colombo et al., 2015; Mollick, 2014), we measured crowd-
funding performance dichotomously. If a campaign meets or exceeds its goal, it is
coded 1, and 0 otherwise. Our study includes three independent variables: entre-
preneurial self-ecacy, entrepreneurial passion and prior industry experience. We
adapted McGee et al.’s (2009) established entrepreneurial self-ecacy scale. Each
item was coded on a ve-point Likert scale (ranging from 1 = ‘low condence’ to
5 = ‘high condence’). Where necessary, scales were modied to t the crowd-
funding context (Chen et al., 1998; McGee et al., 2009). e last two items of the
existing ten-item scale for entrepreneurial self-ecacy were not applicable in our
crowdfunding context; as a result, we dropped these items. Given this change, we
then checked construct validity. First, we conducted an exploratory factor analysis
with 50 projects. e results supported a one-factor solution: all eight items (items
are shown in Table 10A.1) had loadings greater than 0.60 on the factor. Internal
consistency was also achieved with α = 0.85. Second, once all data were collected,
we performed conrmatory factor analysis. e analysis indicated that we have a
sucient overall t for the one-factor model (χ² = 24.46, df = 14, p = 0.04, CFI =
0.97, TLI = 0.95, RMSEA = 0.09, SRMR = 0.04).
For entrepreneurial passion, we adopted the established measure developed by
Chen et al. (2009). Items are shown in Table 10A.2. High internal consistency was
achieved (α = 0.88). Consistent with Chen et al., we used a ve-point Likert scale
(ranging from 1 = ‘never’ to 5 = ‘very frequently’). Prior industry experience was
dummy coded as 1 if an entrepreneur mentioned that she had prior related indus-
try experience, and 0 otherwise. Coding was performed by two independent coders
for the rst 50 projects. After 50 projects were coded, interrater agreement was
evaluated. Reliabilities were high (that is, r > 0.8). Due to the high interrater reli-
ability, the remaining 147 projects were rated by a single coder (Cuddy et al., 2015).
To minimize alternative explanations, we included a broad set of controls. First,
prior crowdfunding experience on Kickstarter was controlled for (dummy coded),
under the assumption that experience may lead to a better campaign. Second,
because a team of entrepreneurs may have more resources than a sole entrepreneur
(Mosakowski, 1998), we controlled for whether the venture was launched by an
individual or a team (dummy coded, team = 1, 0 otherwise). ird, consistent with
prior ndings showing that internal social capital has an eect on the outcome
of the campaign (Colombo et al., 2015), we controlled for internal social capital.
Fourth, because some projects were featured as ‘sta picks’, which might give such
projects greater exposure, we controlled for whether a given project had this desig-
nation (dummy coded, featured on Kickstarter = 1, 0 otherwise). Fifth, since media
coverage can be a signal of quality, can bring more attention and can provide legiti-
macy (Deephouse, 2000), we controlled for this by examining whether a campaign
had such coverage, as reected on their crowdfunding page (dummy coded, media
coverage = 1, 0 otherwise). Sixth and nally, consistent with prior studies (Mollick,
2014), we controlled for the duration and funding goal (log transformation) of each
Table 10.1 shows means, standard deviations and a correlation matrix for the vari-
ables included in the statistical models. We checked for multicollinearity with vari-
ance ination factors (VIFs). e results indicated that the maximum value is 1.46
and the mean value is 1.18. Both are within accepted limits. Table 10.2 presents our
logistic regression models. Model 1 is limited to controls, Model 2 adds all predic-
tors. In Hypothesis 1, we predicted that entrepreneurial self-ecacy is positively
related to crowdfunding performance. Consistent with our theory, we found that
the coecient estimate is positive and statistically signicant (β = 1.029; p = 0.004).
us, Hypothesis 1 is supported. Hypothesis 2 predicted that high entrepreneurial
passion is positively related to crowdfunding performance. We also nd support
for this hypothesis (β = 0.853; p = 0.027). Finally, Hypothesis 3 predicted that prior
industry experience helps women entrepreneurs in succeeding with their cam-
paigns. is, too, was supported (β = 1.123; p = 0.046).
is chapter builds a theoretical framework for predicting women entrepre-
neurs’ crowdfunding performance. Given that women entrepreneurs are playing
an important role in the economy, and 40 percent of entrepreneurial rms are
founded by women, this issue also has immense practical implications. Our anal-
ysis with 197 female-led projects on Kickstarter from three industry categories
(product design, gaming and technology) reveal that entrepreneurial self-ecacy,
entrepreneurial passion and prior industry experience of women entrepreneurs are
positively related to crowdfunding performance. Our results are consistent with
our developed hypotheses. Our study provides support for the idea that women
entrepreneurs with high entrepreneurial self-ecacy engender more support from
potential backers through their strong self-belief and ability to tackle dicult tasks,
resulting in a successful crowdfunding performance. eir entrepreneurial passion
appears to serve as an indicator of greater preparedness and commitment, which in
turn will lead the backers to believe in their venture ideas.
Table 10.1 Descriptive statistics and correlationsa
Variables Mean s.d. 1 2 3 4 5 6 7 8 9 10
Dependent variable
1. Crowdfunding Performance 0.78 0.41
Control variables
2. Prior Crowdfunding Experience 0.12 0.43 0.12
3. Individual/Team 0.36 0.49 0.13 −0.05
4. Internal Social Capital 2.93 4.54 0.21 0.12 −0.08
5. Featured on Kickstarter 0.23 0.42 0.26 0.02 0.02 0.18
6. Media Coverage 0.07 0.26 0.10 −0.03 0.08 0.15 0.08
7. Duration of Campaign 36.40 13.84 −0.19 −0.09 −0.05 −0.08 −0.04 −0.01
8. Goal of Campaign (Logged) 8.90 1.38 −0.35 −0.09 0.09 −0.02 −0.05 0.24 0.17
Independent variables
9. Entrepreneurial Self-Efficacy 3.38 0.88 0.23 0.02 0.24 0.05 0.18 0.19 −0.08 0.31
10. Entrepreneurial Passion 3.34 0.74 0.28 0.11 0.15 0.16 0.13 0.08 −0.05 0.08 0.42
11. Prior Industry Experience 2.67 30.96 0.04 −0.02 0.10 −0.01 0.13 −0.02 −0.03 0.04 0.07 −0.02
Note: N = 197. Correlations with absolute greater than 0.16 are significant at p < 0.05.
While our study makes some important contributions, it is also important to be
mindful of the trade-os we made in order to achieve these ndings. In order
to maximize the similarity of crowdfunding projects to traditional ventures, we
limited our sampling frame to those categories previously established to be most
reective of such ventures. However, future research might take a broader view of
crowdfunding projects in order to better understand the crowdfunding phenom-
enon overall. Further, we measured entrepreneurial passion manifested through
facial expressions, body movement, tone of voice and other non-verbal cues which
may overlap with impression management cues (Baron, 1989). While there is good
evidence for this type of espoused passion measure, psychometric measures of pas-
sion might provide further condence in our ndings.
Given the nearly equal representation of women entrepreneurs on crowdfunding
platforms, this study suggests some directions for future research. For example,
future studies can develop a deeper understanding of factors that may moderate
the relationship between entrepreneurial self-ecacy, passion and crowdfunding
performance of women entrepreneurs. On the other hand, it would be interesting
to explore whether female backers are more prone to fund women entrepreneurs
due to their social identication with ‘women’ (Brown, 2000), or whether male
backers are coming forward to back women entrepreneurs. Since crowdfunding
could be women entrepreneurs’ most promising source of early-stage funding, it
Table 10.2 Regression analysis for campaign result
Variables Model 1 Model 2
Control Variables
Prior Crowdfunding Experience 1.334 0.640
Individual/Team 1.452*** 1.012*
Internal Social Capital 0.307*** 0.332***
Featured on Kickstarter 3.875*** 3.350**
Media Coverage 2.523** 2.488*
Duration of Campaign −0.025 −0.024
Goal of Campaign (Logged) −1.005*** −1.453***
Industry Dummies
Independent Variables
Entrepreneurial Self-Efficacy 1.029***
Entrepreneurial Passion 0.853**
Prior Industry Experience 1.123**
N 197 197
Chi-square 82.909 105.688
*** p < 0.01, ** p < 0.05, * p < 0.1
Industry controls (dummy variables) included in analysis but not reported.
is important to better understand the overall role of narratives in helping entre-
preneurs to establish a relationship with backers. Future research could do this by
conducting a content analysis of the narratives used on crowdfunding platforms.
For example, it would be interesting to examine the extent to which social identity
espoused by crowdfunders impacts crowdfunding performance.
We began this study motivated by a belief in the importance of women entrepre-
neurs, and with the desire to better understand the interaction between condence
and passion in inuencing fundraising performance. Given that crowdfunding is
a promising avenue for many women entrepreneurs to access needed nancial
resources, our results contribute to both the theory and practice by showing that
high levels of self-ecacy (condence) and passion among women entrepreneurs
result in better fundraising outcomes through crowdfunding. In this chapter, we
begin to connect the dots between women entrepreneurs and access to resources
via crowdfunding. We provide an initial look at factors inuencing the crowdfund-
ing performance of women entrepreneurs. We provide a broader understanding
of entrepreneurial passion and entrepreneurial self-ecacy by examining their
eect in the novel resource acquisition context of crowdfunding. Overall, this work
is another step towards understanding how to increase the survival rate of the
women-led ventures through innovative venture funding.
* All authors contributed equally.
Afuah, A. and C.L. Tucci (2012), ‘Crowdsourcing as a solution to distant search’, Academy of
Management Review, 37(3), 355–375.
Allison, T.H., A.F. McKenny and J.C. Short (2013), ‘e eect of entrepreneurial rhetoric on micro-
lending investment: an examination of the warm-glow eect’, Journal of Business Venturing, 28(6),
Assenova, V., J. Best, M. Cagney, et al. (2016), ‘e present and future of crowdfunding’, California
Management Review, 58(2), 125–135.
Bandura, A. (1997), Self-Ecacy: e Exercise of Control, New York: Freeman.
Baron, R.A. (1989), ‘Impression management by applicants during employment interviews: the “too
much of a good thing” eect’ in R.W. Eder and G.R. Ferris (eds), e Employment Interview: eory,
research, and practice, Newbury Park, CA: Sage.
Belleamme, P., T. Lambert and A. Schwienbacher (2014), ‘Crowdfunding: tapping the right crowd’,
Journal of Business Venturing, 29(5), 585–609.
Boden, R.J. and A.R. Nucci (2000), ‘On the survival prospects of men’s and women’s new business
ventures’, Journal of Business Venturing, 15(4), 347–362.
Brown, R. (2000), ‘Social identity theory: past achievements, current problems and future challenges’,
European Journal of Social Psychology, 30(6), 745–778.
Bruton, G., S. Khavul, D. Siegel and M.Wright (2015), ‘New nancial alternatives in seeding
entrepreneurship: micronance, crowdfunding, and peer-to-peer innovations’, Entrepreneurship
eory and Practice, 39(1), 9–26.
Bruton, G.D., S. Khavul and H. Chavez (2011), ‘Microlending in emerging economies: building a new
line of inquiry from the ground up’, Journal of International Business Studies, 42(5), 718–739.
Cardon, M.S., J. Wincent, J. Singh and M. Drnovsek (2009), ‘e nature and experience of entrepre-
neurial passion’, Academy of Management Review, 34(3), 511–532.
Carter, N.M., M. Williams and P.D. Reynolds (1997), ‘Discontinuance among new rms in retail: the
inuence of initial resources, strategy, and gender’, Journal of Business Venturing, 12(2), 125–145.
Cassar, G. and H. Friedman (2009), ‘Does self-ecacy aect entrepreneurial investment?’, Strategic
Entrepreneurship Journal, 3(3), 241–260.
Chen, C.C., P.G. Greene and A. Crick (1998), ‘Does entrepreneurial self-ecacy distinguish entrepre-
neurs from managers?’, Journal of Business Venturing, 13(4), 295–316.
Chen, X.-P., X. Yao and S. Kotha (2009), ‘Entrepreneur passion and preparedness in business plan
presentations: a persuasion analysis of venture capitalists’ funding decisions’, Academy of
Management Journal, 52(1), 199–214.
Colombo, M.G., C. Franzoni and C. Rossi-Lamastra (2015), ‘Internal social capital and the attraction of
early contributions in crowdfunding’, Entrepreneurship eory and Practice, 39(1), 75–100.
Cuddy, A.J., C.A. Wilmuth, A.J. Yap and D.R. Carney (2015), ‘Preparatory power posing aects nonver-
bal presence and job interview performance’, Journal of Applied Psychology, 100(4), 1286.
Davidsson, P. and B. Honig (2003), ‘e role of social and human capital among nascent entrepreneurs’,
Journal of Business Venturing, 18(3), 301–331.
Deephouse, D.L. (2000), ‘Media reputation as a strategic resource: an integration of mass communica-
tion and resource-based theories’, Journal of Management, 26(6), 1091–1112.
Delmar, F. and S. Shane (2006), ‘Does experience matter? e eect of founding team experience on the
survival and sales of newly founded ventures’, Strategic Organization, 4(3), 215–247.
DeTienne, D.R. and G.N. Chandler (2007), ‘e role of gender in opportunity identication’,
Entrepreneurship eory and Practice, 31(3), 365–386.
Dobrev, S.D. and W.P. Barnett (2005), ‘Organizational roles and transition to entrepreneurship’,
Academy of Management Journal, 48(3), 433–449.
Fairlie, R.W. and A.M. Robb (2009), ‘Gender dierences in business performance: evidence from the
Characteristics of Business Owners survey’, Small Business Economics, 33(4), 375–395.
Franke, N., M. Gruber, D. Harho and J. Henkel (2008), ‘Venture capitalists’ evaluations of start-up
teams: trade-os, knock-out criteria, and the impact of VC experience’, Entrepreneurship eory
and Practice, 32(3), 459–483.
Gatewood, E.J., K.G. Shaver and W.B. Gartner (1995), ‘A longitudinal study of cognitive factors inu-
encing start-up behaviors and success at venture creation’, Journal of Business Venturing, 10(5),
Greenberg, J. and E.R. Mollick (2017), ‘Activist choice homophily and the crowdfunding of female
founders’,Administrative Science Quarterly,62(2), 341–374.
Hildebrand, T., M. Puri and J. Rocholl (2016), ‘Adverse incentives in crowdfunding’, Management
Science,63(3), 587–608.
Hmieleski, K.M. and R.A. Baron (2008), ‘When does entrepreneurial self-ecacy enhance versus reduce
rm performance?’, Strategic Entrepreneurship Journal, 2(1), 57–72.
Hmieleski, K.M. and A.C. Corbett (2008), ‘e contrasting interaction eects of improvisational behav-
ior with entrepreneurial self-ecacy on new venture performance and entrepreneur work satisfac-
tion’, Journal of Business Venturing, 23(4), 482–496.
Honig, B. (1998), ‘What determines success? Examining the human, nancial, and social capital of
Jamaican microentrepreneurs’, Journal of Business Venturing, 13(5), 371–394.
Jennings, J.E. and C.G. Brush (2013), ‘Research on women entrepreneurs: challenges to (and from) the
broader entrepreneurship literature?’, Academy of Management Annals, 7(1), 663–715.
Justo, R., D.R. DeTienne and P. Sieger (2015), ‘Failure or voluntary exit? Reassessing the female under-
performance hypothesis’, Journal of Business Venturing, 30(6), 775–792.
Klapper, L.F. and S.C. Parker (2011), ‘Gender and the business environment for new rm creation’,
World Bank Research Observer, 26(2), 237–257.
Kotha, R. and G. George (2012), ‘Friends, family, or fools: entrepreneur experience and its implications
for equity distribution and resource mobilization’, Journal of Business Venturing, 27(5), 525–543.
Lerner, M., C. Brush and R. Hisrich (1997), ‘Israeli women entrepreneurs: an examination of factors
aecting performance’, Journal of Business Venturing, 12(4), 315–339.
Marom, D., A. Robb and O. Sade (2014), ‘Gender dynamics in crowdfunding (Kickstarter): evidence
on entrepreneurs, investors, deals and taste based discrimination’, Investors, Deals and Taste Based
Discrimination (October 10).
Marom, D., A. Robb, and O. Sade (2015), ‘Gender dynamics in crowdfunding (Kickstarter): evidence
on entrepreneurs, investors, deals and taste-based discrimination’, Investors, Deals and Taste-Based
Discrimination (December 6).
McGee, J.E., M. Peterson, S.L. Mueller and J.M. Sequeira (2009), ‘Entrepreneurial self-ecacy: rening
the measure’, Entrepreneurship eory and Practice, 33(4), 965–988.
Mollick, E. (2014), ‘e dynamics of crowdfunding: an exploratory study’, Journal of Business Venturing,
29(1), 1–16.
Mollick, E. and V. Kuppuswamy (2014), ‘After the campaign: outcomes of crowdfunding’, available at
Mosakowski, E. (1998), ‘Entrepreneurial resources, organizational choices, and competitive outcomes’,
Organization Science, 9(6), 625–643.
Oo, P.P. and T.H. Allison (2015), ‘Crowdfunding an entrepreneurial career: the role of prior paid employ-
ment in crowdfunding’, paper presented at the Academy of Management Proceedings, August 7–11,
Rauch, A., M. Frese and A. Utsch (2005), ‘Eects of human capital and long-term human resources
development and utilization on employment growth of small-scale businesses: a causal analysis’,
Entrepreneurship eory and Practice, 29(6), 681–698.
Robinson, R.B. (1988). ‘Emerging strategies in the venture capital industry’, Journal of Business
Venturing, 2(1), 53–77.
Shane, S. and T. Stuart (2002), ‘Organizational endowments and the performance of university start-
ups’, Management Science, 48(1), 154–170.
Vallerand, R.J., C. Blanchard, G.A. Mageau, et al. (2003), ‘Les passions de l’âme: on obsessive and harmo-
nious passion’, Journal of Personality and Social Psychology, 85(4), 756–767.
Wilson, F., J. Kickul and D. Marlino (2007), ‘Gender, entrepreneurial self-ecacy, and entrepreneurial
career intentions: implications for entrepreneurship education1’, Entrepreneurship eory and
Practice, 31(3), 387–406.
Zhang, J. and P. Liu (2012), ‘Rational herding in microloan markets’, Management Science, 58(5),
Table 10A.1 Entrepreneurial self-efficacy rating scale
Items Scale*
How much confidence does the speaker have in her ability to come up with a new
idea for a product or service?
1 2 3 4 5
How much confidence does the speaker have in her ability to design a product or
service that will satisfy customer needs and wants?
1 2 3 4 5
How much confidence does the speaker have in her ability to estimate customer
demand for a new product or service?
1 2 3 4 5
How much confidence does the speaker have in her ability to determine a
competitive price for a new product or service?
1 2 3 4 5
How much confidence does the speaker have in her ability to estimate the amount
of start-up funds and working capital necessary to start the business?
1 2 3 4 5
How much confidence does the speaker have in her ability to design an effective
marketing/advertising campaign for a new product or service
1 2 3 4 5
How much confidence does the speaker have in her ability to get others to identify
with and believe in the vision and plans for a new business?
1 2 3 4 5
How much confidence does the speaker have in her ability to clearly and concisely
explain verbally/in writing the business idea in everyday terms?
1 2 3 4 5
Note: * 1 = low confidence, 2 = moderate confidence, 3 = uncertain, 4 = much confident, 5 = high
Table 10A.2 Entrepreneurial passion rating scale
Items Scale*
The presenter(s) had energetic body movements. 1 2 3 4 5
The presenter(s) had rich body language 1 2 3 4 5
The presenter(s) showed animated facial expression 1 2 3 4 5
The presenter(s) used a lot of gestures 1 2 3 4 5
The presenter’s face lit up when he/she talked 1 2 3 4 5
The presenter(s) talked with varied tone and pitch 1 2 3 4 5
Note: * 1 = never, 2 = rarely, 3 = occasionally, 4 = frequently, 5 = very frequently
Full-text available
This study examined nascent entrepreneurship by comparing individuals engaged in nascent activities (n = 452), after screening a sample from the general population (n=30,427). Due to the large sample size and the utilization of a control group of non-entrepreneurs (n=608), the findings of this study present a new approach to the relationship between human capital, social capital and entrepreneurship. Our primary objective was to help close the significant research gap regarding the sociological characteristics of nascent entrepreneurs, as well as to examine the comparative importance of various contributions and factors, such as personal networks and business classes. Having friends in business and being encouraged by them was a strong predictor regarding who among the general population eventually engaged in nascent activity. The study fails to support the role of formal education in predicting either nascent entrepreneurship or comparative success, when success is measured in terms of the three defined activities — creating a business plan, registering the business, or obtaining the first sale. Of particular note was that attending business classes specifically designed to promote entrepreneurship failed to be associated with successful business paths. This research suggests that national governments considering intervention activities might be wiser to focus on structural relationships than on programs specifically targeted to promote certain entrepreneurial activities. The facilitation of entrepreneurial social capital should be more successful if agencies filter their assistance through previous existing social networks. In addition, our findings suggest that countries that lack a very highly educated population may not be at a particular disadvantage regarding entrepreneurial activities.
Full-text available
A group of experts discuss their thoughts about the current state of crowdfunding, its future, important emerging trends in the field, and the opportunities and challenges facing investors and entrepreneurs in the space. Across the board, these experts highlight the importance of crowdfunding as a means for mobilizing resources. They also maintain that crowdfunding has already emerged as an important force in global finance, one which appears here to stay, but one where we have only begun to see the ways in which it will transform the financial sector.
This paper analyzes the substantially growing markets for crowdfunding, in which retail investors lend to borrowers without financial intermediaries. Critics suggest that these markets allow sophisticated investors to take advantage of unsophisticated investors. The growth and viability of these markets critically depend on the underlying incentives. We provide evidence of perverse incentives in crowdfunding that are not fully recognized by the market. In particular, we look at group leader bids in the presence of origination fees and find that these bids are (wrongly) perceived as a signal of good loan quality, resulting in lower interest rates. Yet these loans actually have higher default rates. These adverse incentives are overcome only with sufficient skin in the game and when there are no origination fees. The results from the analysis in this paper provide more general implications for crowdfunding, its structure, and its regulation.
Crowdfunding is an emerging source of capital. Using signaling theory, we examine the role of positive and negative signals of value and commitment arising from prior paid employment in crowdfunding. Because crowdfunding provides both exposure as well as capital, we look at the effect of related experience, unrelated experience, quitting paid employment, and keeping paid employment on capital acquisition. While positive signals operate as expected, crowdfunders view negative signals differently than established theory predicts.
In this study, we examine the relationship between owner and business characteristics and business survival. Our findings are based upon analyses of the Census Bureau's 1982 and 1987 Characteristics of Business Owners (CBO) survey data on a sample of white male and female sole proprietors. Two aspects of this study distinguish it from any related studies to date. First, we separately examine issues affecting the survival prospects of female-owned businesses, whereas previous studies have focussed solely on businesses owned by men. Second, we use data on cohorts of businesses started or acquired in two different time periods, namely 1980-1982 and 1985-1987. Overall, the mean survival rates of male-owned businesses in these two cohorts are 4- to 6% higher, respectively, that those of businesses owned by women. We hypothesize that wage employment provides opportunities for men and women to acquire the financial and human capital necessary for success in business ownership. In fact, most male and female business owners had some prior spell of employment in the wage sector. But there are gender differences in the status of wage workers that, we further hypothesize, could differentially impact the survival prospects of men's and women's new business ventures. First, women's lower average wage earnings may imply more binding financial constraints on the initial scale of women's businesses relative to men's. Second, we find that female owners in both cohorts are less likely than their male counterparts to have had any prior managerial experience or to have 10 or more years of general, prior paid employment experience, which may imply that female entrepreneurs are more constrained in the amount and quality of human capital that they acquire during wage employment. Female entrepreneurs' access to debt and equity capital has not been overlooked by policy makers. What has been largely overlooked are possible gender differences in the amount and quality of human capital of new entrepreneurs. Women's fewer years of general work experience and lesser exposure to managerial occupations may indicate a role for remedial education or mentoring of would-be female entrepreneurs. Women in both cohorts tended to use less financial capital to start or acquire their businesses than men did, and for the 1982 cohort, business survival is found to be positively related to the amount of start-up capital, other factors held constant. The survival prospects of both male- and female-owned businesses are greater for owners with 10 or more years of prior work experience and/or 4 or more years of college. So at least in terms of education and quantity of work experience, female entrepreneurs are at something of a disadvantage relative to their male counterparts. We find that prior managerial experience has no systematic positive or negative effects on the survival prospects of either men's or women's new business ventures, however. Finally, our research indicates that issues concerning business formation and survival must be considered within the context of prevailing macroeconomic conditions. For example, we find that the survival rates of both male- and female-owned businesses started in the 1985-1987 time period were considerably higher than those of businesses started in 1980-1982. Moreover, we uncover systematic differences in owner and business characteristics between our 1982 and 1987 cohorts, as well as differences in how these characteristics influence business survival. Specifically, both male and female owners in our 1982 cohort were better educated, were more likely to have had prior, paid managerial experience, and had more years of prior, paid employment experience, in general. Researchers interested in assessing the survival prospects of businesses over a given time period must consider changes in both product and labor markets over that period. Strength of demand in product markets will have an obvious, direct effect on business viability. The tightening and loosening of labor markets imply changes in potential wage earnings (an opportunity cost of being self-employed) and in this way can affect business dissolution.
The resource-based view proposes that reputation is a resource leading to competitive advantage. Past research tested this by using Fortune ratings to measure reputation, but these ratings are theoretically weak. This paper integrates mass communication theory into past research to develop a concept called media reputation, defined as the overall evaluation of a firm presented in the media. Theoretical and empirical analyses indicate that media reputation is a resource that increases the performance of commercial banks.
The authors tested whether engaging in expansive (vs. contractive) "power poses" before a stressful job interview-preparatory power posing-would enhance performance during the interview. Participants adopted high-power (i.e., expansive, open) poses or low-power (i.e., contractive, closed) poses, and then prepared and delivered a speech to 2 evaluators as part of a mock job interview. All interview speeches were videotaped and coded for overall performance and hireability and for 2 potential mediators: verbal content (e.g., structure, content) and nonverbal presence (e.g., captivating, enthusiastic). As predicted, those who prepared for the job interview with high- (vs. low-) power poses performed better and were more likely to be chosen for hire; this relation was mediated by nonverbal presence, but not by verbal content. Although previous research has focused on how a nonverbal behavior that is enacted during interactions and observed by perceivers affects how those perceivers evaluate and respond to the actor, this experiment focused on how a nonverbal behavior that is enacted before the interaction and unobserved by perceivers affects the actor's performance, which, in turn, affects how perceivers evaluate and respond to the actor. This experiment reveals a theoretically novel and practically informative result that demonstrates the causal relation between preparatory nonverbal behavior and subsequent performance and outcomes. (PsycINFO Database Record (c) 2015 APA, all rights reserved).