Crowdfunding and Social Entrepreneurship: Spotlight on Intermediaries

Andrea Rey-Martí, Antonia Mohedano-Suanes and Virginia Simón-Moya
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Andrea Rey-Martí: Department of Business Administration “Juan José Renau Piqueras”, University of Valencia, 46022 Valencia, Spain
Antonia Mohedano-Suanes: Department of Business Administration “Juan José Renau Piqueras”, University of Valencia, 46022 Valencia, Spain
Virginia Simón-Moya: Department of Business Administration “Juan José Renau Piqueras”, University of Valencia, 46022 Valencia, Spain

Sustainability, 2019, vol. 11, issue 4, 1-23

Abstract: This study contributes to the literature by describing how crowdfunding platforms that host social entrepreneurship projects build and preserve legitimacy. We study three intermediaries, analyzing the actions they take to ensure that creators and funders perceive crowdfunding as a trustworthy form of alternative finance. This study shows that the legitimacy that funders ascribe to a project’s social and/or environmental aims is also a source of legitimacy for the intermediaries that promote social entrepreneurship projects. These intermediaries act as agents of social change, using a range of mechanisms to promote projects that seek to create social and/or environmental value in addition to economic value. Our study also has practical implications. We highlight the mechanisms used to reduce potential risks for intermediaries, creators, and funders and ensure their trust in crowdfunding.

Keywords: social entrepreneurship; crowdfunding; legitimacy; intermediaries; case study (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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