Tackling gender disparity and achieving optimal distinctiveness in crowdfunding platforms

Vallari Chandna and Zhuoli Axelton

Business Horizons, 2025, vol. 68, issue 3, 351-360

Abstract: Women entrepreneurs often encounter substantial obstacles when securing funding through crowdfunding platforms. These challenges include biases leading to funding failures, difficulties presenting and communicating their campaigns in funding-friendly formats, and a lack of strong social networks. Gender inequity in crowdfunding hinders the growth of women-led initiatives and stifles innovation and diversity in the entrepreneurial landscape. We explore the literature on crowdfunding digital platforms to shed light on the issues of gender equity regarding women entrepreneurs and propose strategies to address gender disparity in crowdfunding. More specifically, we use optimal distinctiveness theory as a foundation to propose that crowdfunding platform operators should find the best possible niche to appeal to an array of new investors while addressing gender disparity and empowering women entrepreneurs. Platforms can derive strategic advantages through distinctive value propositions that include gender-blind crowdfunding campaigns or a focus on campaign designing, thus ensuring fair evaluations based solely on project merit, which would likely foster inclusivity and equal opportunities. Crowdfunding platforms can also leverage unique offerings, such as becoming known for their network expansion support, dedicated training resources, or the highlighting of frequent funders of women-led campaigns, all of which helps level the playing field and obtaining a competitive advantage.

Keywords: Crowdfunding; Social capital; Optimal distinctiveness; Entrepreneurship; Gender bias; Digital platforms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:68:y:2025:i:3:p:351-360

DOI: 10.1016/j.bushor.2025.01.004

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