DETERMINING ENTREPRENEURIAL SUCCESS: AN ANALYSIS OF INTERNAL AND EXTERNAL FACTORS IN RELATION TO CROWDFUNDING

Abstract

The purpose of this study was to determine which internal and external conditions suspend or propel collaboration between borrowers (entrepreneurs/creators) and lenders (donors) that, in turn, explain for successful funding on Kickstarter. Successful funding is defined by a creator reaching full funding status, also known as the “all or nothing” model. Through a sample of 219 projects on Kickstarter and the related entrepreneurs LinkedIn page, regression analysis was conducted to collect data on probable determinants to success. These variables included: gender, level of education, degree type, school research status, major and industry type, and volunteer and entrepreneurial experience. The multiple regression analyses found that level of education (traditional and higher education degree), degree type (Bachelor of Science and Master of Business Administration), school research designation (R1 and R2 status), major and industry type (business-related fields), and experience (philanthropic and entrepreneurial) all significantly predicted success on Kickstarter. Collectively, these findings indicate that an entrepreneur’s background influence higher quality intrinsic skills used to fully develop an idea or product to fruition. These results have the potential to be used in future studies that can perform a higher level of statistical analysis and compare factors that are not limited to an entrepreneurs’ observable LinkedIn page.