Are you a motivated and prepared entrepreneur willing to develop granular ideas or projects to deliver impact? Well, crowdfunding is an opportunity for you. Why? Not only because it confirms to be an adequate alternative of financing, but also because it leads to the creation of healthy ventures post-campaign.
Indeed, according to a recent study, sustainability initiatives are 70% likely to survive after a crowdfunding campaign. As such, crowdfunding seems to be particularly effective in contributing to the development of ventures which drive social change. In particular, the authors bring to our attention three typical dimensions: social, environmental, and economic.
1. Social impact
From the study, it emerges the role of crowdfunding as an empowering tool for a part of the population, such as women, who face more difficulties to access traditional sources of capital. Results point out that, in a male-dominated world, women have created a more resilient business in the aftermath of a campaign.
Moreover, reward-based crowdfunding platforms also promote more social-oriented project profiles by recompensing with higher rates of success campaigns which donate part of the profits.
2. Environmental impact
Crowdfunding stimulates the offer of more environmentally conscious goods and services. Indeed, the highest rates of fundraised projects sit within the ones which aim at lowering the impact on the environment.
3. Economic impact
Finally, crowdfunding allows the concretization of businesses with social and environmental merits that would not be viable otherwise.
All in all, it can be concluded that crowdfunding could encourage future activism in the field of sustainable entrepreneurship and thus help drive global change towards sustainability.
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Oliver* 