The role of entrepreneurship and uncertainty with reward-based crowdfunding in the digital age

Abstract: Crowdfunding is a transformative service innovation, a novel and revolutionary way for entrepreneurs to obtain funding for their start-up ventures. This study explores the phenomenon of reward-based crowdfunding in relation to entrepreneurial behaviour and decision-making, as well as the relationship between the entrepreneur and the community. Following a case-study approach, the phenomenon is described based on existing literature and collected empirics from five qualitative in-depth interviews with entrepreneurs performing on Kickstarter. The findings of this study reveal, that reward-based crowdfunding reveals several mechanisms, which attract entrepreneurs to execute their activities and deal with uncertainty in a safer way. These activities refer to (1) independency from traditional investors, (2) creative and effectual reasoning at affordable loss, (3) extending the entrepreneur’s social network via the internet, and (4) utilizing web-based platforms for co-creation of marketing, communication, product design, and brand development. This may lead to adapted forms of entrepreneurship in the future.