Title: The role of consumer confidence and inflation in crowdfunding success

Authors: Oya Ekici; Yusuf Aytürk

Addresses: Faculty of Political Sciences, Department of Business Administration, Istanbul University, Beyazit Main Campus, Istanbul, Turkey ' Faculty of Political Sciences, Department of Business Administration, Istanbul University, Beyazit Main Campus, Istanbul, Turkey

Abstract: The aim of this study is to propose macroeconomic environment as possible success driver in reward-based crowdfunding. We use hand-collected data of reward-based crowdfunding projects from Turkey where macroeconomic level data significantly fluctuates during 2013-2020 and binary logistic regression model and ordinary least squares model are applied for data analysis. In addition to significant success factors of updating, project quality, funding goal and social capital of project owners, we indicate that favourable macroeconomic environment significantly influences crowdfunding success. Our results suggest that higher consumer confidence and lower inflationary environment positively affect the probability of success for reward-based crowdfunding campaigns. The findings would appeal to audience from economic policy makers to project owners. It provides new insights into decision when project owners should start their campaigns so that they can increase the probability of success. To develop crowdfunding model in practice, policymakers should primarily focus on management of macroeconomic environment.

Keywords: crowdfunding; success factor; consumer confidence; inflation; multiple logistic regression.

DOI: 10.1504/IJEV.2023.133448

International Journal of Entrepreneurial Venturing, 2023 Vol.15 No.4, pp.295 - 316

Received: 15 Mar 2022
Accepted: 01 Feb 2023
Published online: 15 Sep 2023 *

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