What determines the growth expectations of early-stage entrepreneurs? Evidence from crowdfunding
by Michael Beier; Kerstin Wagner
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 31, No. 1, 2017

Abstract: Entrepreneurs have growth expectations when they plan and start their firms. Currently, measurements of growth expectations are mainly based on entrepreneurs' assessments of their growth path projections. However, these projections fail to consider market developments and are estimated for a long period. In our study, we use reward-based crowdfunding with a public setting on a free, accessible platform to measure (financial) growth expectations for early-stage entrepreneurial activity. Using a dataset of 740 projects published on one of the dominant crowdfunding platforms in Switzerland, we test how the growth expectations of (nascent) entrepreneurs are determined by: 1) individual characteristics; 2) the firm; 3) the intended business strategy. Our results highlight the importance of the individual, i.e., the early-stage entrepreneur, and of the intended strategy, while the venturing stage appears to have no effect on growth expectations. This paper offers new insights into how this new type of financing can be adapted to what is known in the field of nascent entrepreneurship and expected growth. Implications for research and practice are discussed.

Online publication date: Mon, 24-Apr-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurship and Small Business (IJESB):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com