Sustainable projects in crowdfunding campaigns: an explorative study in Italy
DOI:
https://doi.org/10.7433/s126.2025.07Keywords:
crowdfunding, equity, online platform, sustainable development;, social entrepreneurship, ItalyAbstract
Purpose of the paper: The paper aims at defining if the sustainability orientation of projects (social or environmental) positively influences the possibility of succeeding in online equity crowdfunding campaigns.
Methodology: Through the acquisition of data relating to a sample of 240 investment projects present in one of the main Italian online crowdfunding platforms, the research led to the initial construction of a database and the subsequent testing of the research hypotheses.
Findings: The research results show that projects with a sustainable orientation attract a higher number of investors and offer greater participation in the company. However, there are no significant differences compared to business-oriented projects in exceeding the financing target and in the average investment.
Research limits: The research consider only one crowdfunding platform, is based on limited information that can be easily gathered and does not consider if companies proposing sustainable projects are able not only to raise funds through crowdfunding platforms but also employ the funds effectively over time.
Practical implications: This study highlights the existence of high growth opportunities in the field of online equity crowdfunding. This represents an opportunity both for sustainability-oriented companies that wish to raise funds, and for online platforms that can develop new services and achieve market differentiation.
Originality of the paper: Considering the Italian context, the research compares projects sustainable-oriented and business-oriented within crowdfunding campaigns. It represents an explorative study that provides some first insights from which to trigger a future debate on crowdfunding and social entrepreneurship in Italy.
References
AUSTIN, J., STEVENSON, H., WEI-SKILLERN J. (2006), “Social and commercial entrepreneurship: Same, different, or both?” Entrepreneurship Theory and Practice, vol. 31, n. 1, pp. 1-22.
BENTO, N., GIANFRATE, G., THONI, M. H. (2019), “Crowdfunding for sustainability ventures”, Journal of Cleaner Production, vol. 237, 117751.
BIANCALANI, F., CZARNITZKI, D., RICCABONI, M. (2022), “The Italian start up act: A microeconometric program evaluation”, Small Business Economics, vol. 58, n. 3, pp. 1699-1720.
BESHAROV, M. L., SMITH, W. K. (2014), “Multiple institutional logics in organizations: Explaining their varied nature and implications”, Academy of Management Review, vol. 39, n. 3, pp. 364-381.
CALIC, G., MOSAKOWSKI, E. (2016), “Kicking off social entrepreneurship: How a sustainability orientation influences crowdfunding success”, Journal of Management Studies, vol. 53, n. 5, pp.738-767.
CERTO, S. T., MILLER, T. (2008), “Social entrepreneurship: Key issues and concepts”, Business Horizons, vol. 51, n. 4, pp. 267-271.
CICCHIELLO, A. F. (2020), “Harmonizing the crowdfunding regulation in Europe: need, challenges, and risks”, Journal of Small Business & Entrepreneurship, vol. 32, n. 6, pp. 585-606.
CONCETTI, A., AURILIA, M., AVERSANO, A.M., DANEI, M.V., FORESTIERI, S., GIGANTE, E.A., GIORGIO, F., PARISINI, E., SANAPO, I. (2023), “Relazione Annuale al Parlamento sullo stato di attuazione delle policy in favore delle startup e PMI innovative”, Edizione 2023.
CUCINO, V., DI MININ, A., FERRUCCI, L., PICCALUGA, A. (2021), “L’intraprendenza contagiosa”, in Cucino V., Di Minin A., Ferrucci L., Piccaluga A., (edited by), La buona impresa. Storie di startup per un mondo migliore, Il Sole 24 Ore.
D’AGOSTINO, L. M., ILBEIGI, A., TORRISI, S. (2024), “The role of human capital in Italian equity crowdfunding campaigns”, The International Journal of Entrepreneurship and Innovation, vol. 25, n. 1, pp. 45-55.
DART, R. (2004), “The legitimacy of social enterprise”, Nonprofit management and leadership, vol. 14, n. 4, pp. 411-424.
DIAZ-SARACHAGA, J. M., ARIZA-MONTES, A. (2022), “The role of social entrepreneurship in the attainment of the sustainable development goals”, Journal of Business Research, n. 152, pp. 242-250.
FISHER, G. (2020), “The complexities of new venture legitimacy”, Organization Theory, vol. 1, n. 2, 2631787720913881.
GIGLIOTTI, M., RUNFOLA, A. (2022), “A stakeholder perspective on managing tensions in hybrid organizations: Analyzing fair trade for a sustainable development”, Business Strategy and the Environment, vol. 31, n. 7, pp. 3198-3215.
GIRAUDO, E., GIUDICI, G., GRILLI, L. (2019), “Entrepreneurship policy and the financing of young innovative companies: Evidence from the Italian Startup Act”, Research Policy, vol. 48, n. 9, 103801.
GIUDICI, G., CONTI, M., AROSIO, F., BARTOLI, N., CORBARI, N., DECIO, F., FIGARI BARBERIS, G., ITALIANO, D., MAZZINI, M., MOR, I., MUSSO, A., VRANA C. (2023), “8° Report italiano sul CrowdInvesting”, Politecnico di Milano.
GRIECO, C., IASEVOLI, G., MICHELINI, L. (2013), “Impresa sociale e creazione di valore: una tassonomia dei modelli di misurazione dell’impatto sociale sul territorio (Social enterprise and value creation: a taxonomy of models for measuring impact on the ecosystem)”, Sinergie Italian Journal of Management, n. 31, May-Aug, pp. 61-82.
HAUGH, H. (2007), “New strategies for a sustainable society: The growing contribution of social entrepreneurship”, Business Ethics Quarterly, vol. 17, n. 4, pp. 743-749.
HOOS, F. (2022). “Showing off or showing impact? The joint signalling effect of reputation and accountability on social entrepreneurs’ crowdfunding success”, Management Accounting Research, vol. 54, 100778.
HÖRISCH, J. (2015), “Crowdfunding for environmental ventures: an empirical analysis of the influence of environmental orientation on the success of crowdfunding initiatives”, Journal of Cleaner Production, vol. 107, pp. 636-645.
HORNE, J., FICHTER, K. (2022), “Growing for sustainability: Enablers for the growth of impact startups–A conceptual framework, taxonomy, and systematic literature review”, Journal of Cleaner Production, n. 349, 131163.
JIANG, H., WANG, Z., YANG, L., SHEN, J., HAHN, J. (2021), “How rewarding are your rewards? A value-based view of crowdfunding rewards and crowdfunding performance”, Entrepreneurship Theory and Practice, vol. 45, n. 3, pp. 562-599.
KAMALUDIN, M. F., XAVIER, J. A., AMIN, M. (2021), “Social entrepreneurship and sustainability: A conceptual framework”, Journal of Social Entrepreneurship, pp. 1-24.
LUBBERINK, R., BLOK, V., van OPHEM, J., van der VELDE, G., OMTA, O. (2018), “Innovation for society: Towards a typology of developing innovations by social entrepreneurs”, Journal of Social Entrepreneurship, vol. 9, n. 1, pp. 52-78.
van LUNENBURG, M., GEUIJEN, K., MEIJER, A. (2020), “How and why do social and sustainable initiatives scale? A systematic review of the literature on social entrepreneurship and grassroots innovation”, VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, vol. 31, n. 5, pp. 1013-1024.
MAIER, L., BACCARELLA, C. V., BLOCK, J. H., WAGNER, T. F., VOIGT, K. I. (2023), “The legitimization effect of crowdfunding success: a consumer perspective”, Entrepreneurship Theory and Practice, vol. 47, n. 4, pp. 1389-1420.
MAIR, J., MAYER, J., LUTZ, E. (2015), “Navigating institutional plurality: Organizational governance in hybrid organizations”, Organization Studies, vol. 36, n. 6, pp. 713-739.
MAIR, J., MARTÍ, I. (2006), “Social entrepreneurship research: A source of explanation, prediction and delight”, Journal of World Business, vol. 41, n. 1, pp. 36-44.
MCDERMOTT, K., KURUCZ, E. C., COLBERT, B. A. (2018), “Social entrepreneurial opportunity and active stakeholder participation: Resource mobilization in enterprising conveners of cross-sector social partnerships”, Journal of Cleaner Production, n. 183, pp. 121-131.
MITRA, P., JANSSEN, F., HERMANS, J., KICKUL, J. (2022), “Social entrepreneurial crowdfunding: Influence of the type of rewards and of prosocial motivation on the crowds’ willingness to contribute”, Entrepreneurship & Regional Development, vol. 34, n. 9-10), pp. 1001-1024.
MOLLICK, E. (2014), “The dynamics of crowdfunding: An exploratory study”, Journal of Business Venturing, vol. 29, n. 1, pp. 1-16.
OKPARA J. O., HALKIAS D. (2011), “Social entrepreunership: an overview of its theoretical evolution and proposed research model”, International Journal of Social Entrepreunership and Innovation, vol. 1, n. 1, pp. 4-20.
PACHE, A. C., SANTOS, F. (2013), “Inside the hybrid organization: Selective coupling as a response to competing institutional logics”, Academy of Management Journal, vol. 56, n. 4, pp. 972–1001.
PEREDO, A. M., McLEAN, M. (2006), “Social entrepreneurship: A critical review of the concept”, Journal of World Business, vol. 41, n. 1, pp. 56-65.
RAHDARI, A., SEPASI, S., MORADI, M. (2016), “Achieving sustainability through Schumpeterian social entrepreneurship: The role of social enterprises”, Journal of Cleaner Production, n. 137, pp. 347-360.
RAMADANI, V., AGARWAL, S., CAPUTO, A., AGRAWAL, V., DIXIT, J. K. (2022), “Sustainable competencies of social entrepreneurship for sustainable development: Exploratory analysis from a developing economy”, Business Strategy and the Environment, vol. 31, n. 7, pp. 3437-3453.
REUTER, E. (2022), “Hybrid business models in the sharing economy: The role of business model design for managing the environmental paradox”, Business Strategy and the Environment, vol. 31, n. 2, pp. 603-618.
REYNOLDS, N. S., HOLT, D. (2021), “Sustainable development and profit? A sensemaking perspective on hybrid organisations and their founders”, Business Strategy and the Environment, vol. 30, n. 4, pp. 2147-2159.
SEELOS, C., MAIR, J. (2005), “Social entrepreneurship: Creating new business models to serve the poor”, Business Horizons, n. 48, pp. 241-246.
SHARIR, M., LERNER, M. (2006), “Gauging the success of social ventures initiated by individual social entrepreneurs”, Journal of World Business, vol. 41, n. 1, pp. 6-20.
SMITH, L., WOODS, C. (2015), “Stakeholder engagement in the social entrepreneurship process: identity, governance and legitimacy”, Journal of Social Entrepreneurship, vol. 6, n. 2, pp. 186-217.
TAEUSCHER, K., BOUNCKEN, R., PESCH, R. (2021), “Gaining legitimacy by being different: Optimal distinctiveness in crowdfunding platforms”. Academy of Management Journal, vol. 64, n. 1, pp. 149-179.
TIBERIUS, V., HAUPTMEIJER, R. (2021), “Equity crowdfunding: Forecasting market development, platform evolution, and regulation”, Journal of Small Business Management, vol. 59, n. 2, pp. 337-369.
TRAUTWEIN, C. (2021), “Sustainability impact assessment of start-ups–Key insights on relevant assessment challenges and approaches based on an inclusive, systematic literature review” Journal of Cleaner Production, n. 281, 125330.
TROISE, C., TANI, M. (2020), “Exploring entrepreneurial characteristics, motivations and behaviours in equity crowdfunding: some evidence from Italy”, Management Decision, vol. 59, n. 5, pp. 995-1024.
VALENZA, G., BALZANO, M., TANI, M., CAPUTO, A. (2023), “The role of equity crowdfunding campaigns in shaping firm innovativeness: evidence from Italy”, European Journal of Innovation Management, vol. 26, n. 7, pp.86-109.
WEERAWARDENA, J., SULLIVAN MORT, G. (2006), “Investigating social entrepreneur-ship: A multidimensional model”, Journal of World Business, vol. 41, n. 1, pp. 21-35.
ZAHRA, S. A., GEDAJLOVIC, E., NEUBAUM, D. O., SHULMAN, J. M. (2009), “A typology of social entrepreneurs: Motives, search processes and ethical challenges”, Journal of Business Venturing, n. 24, pp. 519-532.
ZHANG, H., CHEN, W. (2019), “Backer motivation in crowdfunding new product ideas: is it about you or is it about me?”, Journal of Product Innovation Management, vol. 36, n. 2, pp. 241-262.
