The Role of Crowd-funding in Social Entrepreneurship: A Review

This literature review provides a comprehensive analysis of crowd-funding within the context of social entrepreneurship and Human-Computer Interaction (HCI). It begins by defining crowd-funding and exploring its current landscape, including its contribution to projects like MyLegacy. The review delves into the significance of HCI in crowd-funding platforms, examining platform types and the role of trust and user engagement. Key concepts like social entrepreneurship and the importance of trust within these ventures are thoroughly discussed, referencing various studies and perspectives on the subject. The paper also explores the current scenario of crowd-funding in different countries like Finland, France and Switzerland. The review concludes by summarizing the key findings and implications of crowd-funding, HCI, and social entrepreneurship, highlighting the importance of these factors for successful projects.

Literature Review

TABLE OF CONTENTS
2.1 Background............................................................................................................................1
2.1.1 Crowd-funding Definition........................................................................................1
2.1.2 Social Entrepreneurship............................................................................................1
2.1.3 Trust in social entrepreneur......................................................................................2
2.1.4 Current scenario of Crowd-funding..........................................................................2
2.1.5 Crowd-funding contribution to MyLegacy..............................................................3
2.2 Understanding significance of HCI in crowd-funding platforms..........................................3
2.2.1 Crowd-funding platforms.........................................................................................4
2.2.2 Definition of HCI and Crowd-funding platforms.....................................................4
2.2.3 HCI contribution for Crowd-funding platforms.......................................................5
2.3.1 Define social entrepreneurship.................................................................................6
2.3.2 Social entrepreneurship platform..............................................................................6
2.4 Trust in respect to crowd-funding and social entrepreneurship.............................................7
2.5 Trust and user engagement....................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

CHAPTER 2- LITERATURE REVIEW
2.1 Background
In this chapter, different sources in respect to Crowd-funding will be evaluated so that
key aspects regarding MyLegacy can be understand in appropriate manner. This section will
provide information about Crowd-funding in detailed manner. Information in respect to social
entrepreneurship will also be addressed so that objective of research can be accomplished.
Objective of research is to establish a secure and trustworthy platform for people and social
entrepreneurs. More specifically the role and contribution of Crowd-funding to MyLegacy will
also be discussed so that research problem can be addressed in desired way.
2.1.1 Concept of Crowd-funding
As per the view of Mollick (2014, pp.1-16), Crowd-funding is considered as practice that
allows entrepreneurs to have participation in funding projects so that better contribution to social
development can also be provided. It has been noticed that the monetary contribution from large
number of people is being made using internet services. It has been witnessed that, Crowd-
funding is concept which is mostly executed by mail-order subscription, benefit events and other
methods. Belleflamme (2014, pp.585-609) has stated that online networking has been
strengthened in recent years that it allows to have better practices of communication. As same by
using internet and digital tools number of people are participating in charity programs so that
livelihood of personnel can be improved in appropriate manner (Schwienbacher and Larralde,
2010, pp.313-333). There are number of web portals and platforms that offer crowdfunding
services so charity programs can be accomplished by use of internet.
Schwienbacher and Larralde (2010, pp.313-333) have contended that the Crowdsourcing
allows having identification of diverse groups that participate in collecting finance. It is a process
that aids in connecting with society by using internet services. By having improved focus on
Crowd-funding the social issues can be overcome in appropriate manner because it allows to
raise funding. With an improved level of funding better support can be provided to social events
that help in development of livelihood of personnels.
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2.1.2 Social Entrepreneurship
According to Kuppuswamy and Bayus (2015, pp.20-21), social entrepreneurship is
considered as process that helps in adopting a business venture techniques so that social issues
can be addressed in appropriate manner. In other words, it allows having effective
implementation of innovative solutions that is beneficial to overcome issues in respect to social,
cultural and environmental. It has been noticed that the social entrepreneurship is considered as
approach that is applied to variety of organizations with motive of size, aims and beliefs. Hemer
(2011, pp.150-200) has asserted that the social services' accomplishment is one of key motive
behind application of social entrepreneurship. In this, people and organizations have attempts to
meet social, cultural and environmental goals which are associated with the voluntary sector. In
other aspect, it can be said that the areas like poverty, health care and community development
can be targeted with a help of social entrepreneurship concept.
2.1.3 Trust in social entrepreneur
Ahlers (2015, pp.955-980) has contended that, trust plays a vital role in successful
implementation of social entrepreneurship. If social entrepreneurship organization does not
maintain the trust within community then goals and objectives cannot be accomplished. Trust is
considered as relationship between two or more parties, whose key motive is to have benefit of
all mutual parties. It has been noticed that the social entrepreneurship and Crowd-funding
activities cannot be accomplished as per key standards. It means, trust factor must be well
maintained in order meet objectives. Ward and Ramachandran (2010, pp.20-150.) have stated
that the transparency aspects can be considered as significant element that may enhance the trust
factor within society. Transparency allows members and society to understand the actual sources
of money generation so that trust can be developed. Without considering the trust factor, number
of critical issues may be faced by social entrepreneur which might affect the success of
organization. Social entrepreneur need to deal with diverse social groups so that basic needs of
community can be fulfilled. If person or organization does not maintain trust with participants
then legal issues can also be occur that may affect overall operations.
As per the view of Mollick (2013, pp12-15), social technical model of trust can be
adopted by entrepreneur to have effective consideration of trust. In this, there are three factors
that need to be consider by entrepreneur while having focus on crowd-funding. Classification can
be as user intentions of trust, users incentives to use and accept technology and users support to
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engage in giving and taking actions. Mollick (2014, pp.1-16) has also stated that the motivation
represents the degree of individual belief. It also allows to identify the ability to perform specific
beneficial actions while having a use of computing services. Along with this, the competency
must be considered by entrepreneur in order to reflects the degree of ease of use when it has
direct relation with the use of the system. David (2016, pp.50-200) has also asserted that
reciprocity represents the degree to which an individual sees oneself as a part of a group. With an
assistance of this, issue in regard to trust and social entrepreneur can be overcome in desired
manner. By having focus on honesty the better success can be attained by the management. It is
because honesty reflects an insurance quality that may provide sustainable opportunities.
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2.1.4 Current scenario of Crowd-funding
As per the view of Schwienbacher (2013, pp.20-26), Finland Crowd-funding can be rated
as amoeba because it does not have clear image in the nation. Although, the concept of same is
not fully developed. It has been noticed that in Finland the Crowd-funding is accomplished by
focusing on donation, lending and investment. Moreover, the legal aspects in regard to
investment Crowd-funding are also not clear that create legislative issue.
Mollick (2014, pp.1-16) has stated that the France is referred as nation that cover
embraces the mentioned concept. It has been noticed that the ratio of Crowd-funding has
increased in recent years. Donation and reward based society funding are most popular forms
and it covers almost 80 % of financiers (Hemer, 2011, pp.150-200). However, lending is also
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Illustration 1: Social technical model of trust
(Source: David, 2016)

becoming critical and new regulations are needed to be developed for accomplishment of goals
and objectives.
Belleflamme (2014, pp.585-609) has stated that the Swiss Crowd-funding market is
relatively young and small as compared to other nations. However, the interesting fact is that
market is having better growth opportunities. Foreign platforms of Crowd-funding have also
entered in the Swiss market. In Switzerland reward, lending, equity and donation funding from
society is more developed. Moreover, the unique combination of existing Crowd-funding can
also be witnessed in the Swiss market (Ahlers, 2015, pp.955-980).
As per above statement, I can say that the Crowd-funding has become one of significant
aspect in current market conditions. By having effective development of diverse activities such
as donation and investment social needs are being accomplished by social entrepreneur's.
2.1.5 Crowd-funding contribution to MyLegacy
As per the view of Schwienbacher and Larralde (2010,pp.313-333), Crowd-funding has
great involvement in development of MyLegacy. By having improved focus on it, the social
needs accomplishment and livelihood of community can be improved. There are number of
finance collecting activities which are being developed in diverse nations so that communal
development objective can be accomplished effective. It also plays key role in raising resources
primarily through an internet platform in the form of donations, exchange for future products,
lending and equity. Kuppuswamy and Bayus (2015, pp.20-21) have stated that the Crowd-
funding also has key impact on the financial aspects. With an assistance of this, economic crises
and further social issues are also being overcome in recent years. It is also significant to have
long termed development of social arrangements (Ward and Ramachandran, 2010, pp. 230-235).
2.2 Understanding significance of HCI in crowd-funding platforms
It is a section that will provide in-depth information about crowd-funding platforms and
its use in HCI. With an assistance of this, the key benefits that society attained by use of crowd-
funding platforms will be discussed. It will also provide detailed information in regard to HCI so
that working of crowd-funding platforms can be improved in appropriate manner.
2.2.1 Crowd-funding platforms
As per the view of Lawton and Marom (2010), there are number of crowd-funding
platforms that are being used by crowd-funding organizations in order to meet goals and
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objectives (Lawton and Marom, 2010). Classifications of platform for the same are Indiegogo,
gust.com, gofundgo.com, rockethub, gofundme, etc. It has been noticed that these are the
network platforms that organizations uses to accomplish funding process. In other words, these
are the web portals that permit participation in donation regarding activities.
Lehner (2013, pp.289-311) has stated that different crowd-funding platforms have
different purpose and approach. For example, individual is working in social development
project and he has posted project on crowd-funding platform. In this respect, crowd-funding
organization will find investors who can donate funds or interested in the project. Kickstarter is
one of most commonly used platform that has raised nearly 220 million dollar funds till date. It
means this platform has provided assistance to 61,000 projects and helped them to have proper
allocation of funds. Lehner and Nicholls (2014, pp.271-286) has contended that one of key
advantage of Kickstarter is that website accepts all kinds of creative projects but not for cause of
campaigns, charity, scholarship, etc. One of key feature of this platform is that it creates a small
reward for performing activities. For example, individual has performed activity on web portal
and funding process has accomplished in successful manner then he may get reward. There are
number of business firms that are using this arena to gather information in respect to funds
allocation. In addition to this, gofundme is also another crowd-funding sites that raises online
money (Martinez-Canas and del Pozo-Rubio, 2012, p.1471). Key specialty of the web portal is
that it allowed to have funding for cause, personal and campaigns. One of key benefit is that
using this site, individual can raise fund for personal campaign.
2.2.2 Definition of HCI and Crowd-funding platforms
According to Ridley-Duff and Bull (2015), HCI (Human computer interaction) is
considered as use of computer technology for enhanced interface between individuals. It has
been identified that it is referred as way that permits human interaction with computer and design
technologies. It is all about promotion of technology so that livelihood of human can be
improved. In addition to this, it can be said that the human-computer interaction is situated at the
intersection of diverse factors that need to be consider by individual for sustainable development.
It mainly focuses on computer science, behavioural science, design, etc. By having improved
focus on such aspects the better support can be provided to crowd-funding platforms so that
goals and objectives can be accomplished (Frydrych and Koeck, 2014, pp.247-269).
Belleflamme, Lambert and Schwienbacher (2010, pp.585-609) have stated that the practice that
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aids funding by having a use of internet are considered as crowd-funding platforms. It also
assists in raising the small amount of money from a large number of people so that social needs
can be accomplished in appropriate manner. Websites that are being used by the individuals to
have effective sharing of funds are considered as crowd-funding platforms. In order to have
effective development of platforms, the combination of technology cost, globalization, etc. need
to be considered so that goals and objectives can be accomplished in appropriate manner.
2.2.3 HCI contribution for Crowd-funding platforms
Kuppuswamy and Bayus (2015, pp.20-21) has stated that the HCI is providing a great
support to crowd-funding platforms so that issues can be resolved and overall funds allocation
can be improved. It has been noticed that the HCI provides a better opportunity to have better
integration with diverse factors that are essential for crowd-funding. With an assistance of this,
use of crowd-funding websites can be improved for betterment of convenience level. In addition
to this, it can be said that the use of HCI provides support to overall working and helps in
meeting objectives.
Agrawal, Catalini and Goldfarb (2013, pp.30-50.) have asserted that the use of HCI also
provides flexibility to crowd-funding platforms that helps in raising the funds and improve
effectiveness of platforms. It promotes the command line interference that is beneficial to have
quick access to services and improve overall effectiveness. Sustainability of the platforms will
also be improved because it supports effective application of concern activities. Giudici, and
et.al., (2012, pp.100-200) has contended that the control over funding activities can be improved
by using HCI which is beneficial to effective operation of activities. Crowd-funding can also be
accomplished in speedy manner by having proper use of HCI. However, it has great relationship
with technology and crowd-funding activities are dependent upon internet. It indicates that the
human computer interaction provides a great contribution to crowd-funding activities. Computer
is considered as technological aspect that used to have command line accomplishment. Proper
use of resources is also one of key benefit behind the use of HCI. It means the overall working of
crowd-funding can be improved in appropriate manner and ensure about the allocation of funds.
2.3 Significance of social-entrepreneurship platform
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2.3.1 Define social entrepreneurship
Mollick (2014, pp.1-16) has asserted that the social entrepreneurship provides a social
innovation and transformation in diverse fields. Classification of key areas can be as education,
health, environment and enterprise development. It has been identified that the social
entrepreneurship is focused towards attracting high amount of talent, money and attention. By
having improved focus on such aspects the businesses are also providing support to charitable
activities. Key motive behind the social entrepreneurship is to provide development opportunities
to society along with meeting the business objectives. One of most key reason behind the
popularity of social entrepreneurship is that it presents interesting and appealing facts about
entrepreneurs.
According to Belleflamme (2014, pp.585-609), social entrepreneurship is considered as
process that helps in adopting a business venture techniques so that social issues can be tarted in
appropriate manner. In other words, it supports effective implementation of innovative solutions
that is beneficial to overcome issues in respect to social, cultural and environmental. It has been
noticed that the social entrepreneurship is an approach that allows to have improved level of
focus on diverse factors such as size, aims and beliefs. Schwienbacher and Larralde (2010,
pp.20-90) have also contended that application of social entrepreneurship is beneficial to have
effective promotion of social services. With an assistance of this, organizations and people both
can have effective development of social, cultural and environmental aspects. It is considered as
factor that promotes voluntary working so that issues in regard to poverty, health care and
community development can be overcome in appropriate manner.
2.3.2 Social entrepreneurship platform
As per the view of Kuppuswamy and Bayus (2015, pp.20-21), social entrepreneurship
platform is considered as key aspect that has effective accomplishment of promotion of social
services. There are number of online platforms that can be used for social entrepreneurship. It
indicates that the use of internet and technology is also beneficial for social entrepreneurship. It
helps in meeting key goals and objectives so that key motive can be accomplished effectively. In
addition to this, it can be stated that the social innovation platform is an initiative of centre which
is used by diverse businesses. It promotes an integrated working and helps in understanding key
aspects of social entrepreneurship. Hemer (2011) has asserted that with an assistance of social
entrepreneurship platform the innovation in management practice can be promoted in effective
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manner. Along with this, it has focus on civil society. It has been noticed that computing also
provides an ability to have effective management of activities so that key goals and objectives
can be accomplished. Day to day activities can be finished effectively by having a use of HCI in
social entrepreneurship. Also, it is evident in current market conditions, if person is having
indirect link with computing device so it is one of great opportunity to have promotion of social
services.
Ahlers (2015, pp.955-980) has asserted that the HCI is one of most important
consideration for any business that helps in using computers so that operational activities can be
accomplished in desired way. It also helps in make sure that the productivity aspects are well
maintained and effective outcomes are being attained. It means in order to meet the social
aspects; the businesses are using HCI so that business can have impressive level of success. HCI
is especially important in the design of safety critical systems (Hemer, 2011). For example, air
traffic control system can be improved in appropriate manner by having significant use of HCI.
Ahlers (2015, pp.955-980) has contended that the HCI also assist in better consideration of
accessibility aspects so that better support can be provided to social entrepreneurship. Key
motive of it is to provide safe, usable, and efficient systems to everyone. It means the charitable
and social development activities can be accomplished in safe manner by businesses if they are
focused towards use of HCI.
Along with this, the success of diverse activities is also dependent upon HCI principles
and techniques. It means it is necessary to make sure that the social entrepreneurship can have
effective development of activities
2.4 Trust in respect to crowd-funding and social entrepreneurship
According to Ward and Ramachandran (2010), social entrepreneurship and crowd-
funding both operational activities are dependent upon trust factor so it is significant for
businesses to provide better trust. It has been noticed that the trust plays a vital role in successful
implementation of social entrepreneurship. By having an improved focus on trust factor the
businesses that are focused towards crowd-funding and social entrepreneurship can have long
termed success. It is advantageous to lead businesses to impressive level of success and make
sure that the goals and objectives are being accomplished. If social entrepreneurship organization
does not maintain the trust within community then goals and objectives cannot be accomplished.
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Schwienbacher (2013, pp.20-26) has stated that the trust is also significant in respect to crowd-
funding. It is because it is a funding or money generation services, so if trust is not proper then it
might be possible that the funding activities cannot be accomplished in appropriate manner
(Schwienbacher, 2013, pp.20-26).
Mollick (2014, pp.1-16) has contended that the trust is considered as relationship between
two or more parties, whose key motive is to have benefit of all mutual parties. It means in order
to have effective and ethical consideration of crowd-funding activities the businesses need to
focus on trust factor so that goals and objectives can be accomplished. In addition to this, it can
be stated that by having effective consideration of trust aspect the business firm can easily
manage the work activities which is beneficial to have effective promotion of social voluntary
activities. Along with this, it has also been identified that the social entrepreneurship and Crowd-
funding activities cannot be accomplished as per key standards if organizations are not focused
towards trust factor. Belleflamme (2014, pp.585-609) has stated that it is significant for
businesses to make sure that the trust factor is well maintained and it allows to meet goals and
objectives. It also enhances the transparency which is considered as one of key factor in crowd-
funding. If allocation of funds is not accomplished with consideration of transparency then
overall outcome may get affected in negative manner.
According to Belleflamme (2014, pp.585-609), the trust factor is directly linked with the
transparency aspects so that social development objectives can be accomplished in desired way.
In addition to this, it can be referred as significant element that may enhance the social
development opportunities. Money generation can also be improved by having effective
development of trust and transparency. It will also allow to have proper understanding in respect
to actual sources that may assist in generating money along with trust factor. Without
considering the trust factor, number of critical issues may be faced by social entrepreneur who
might affect the success of organization. It indicates that the social entrepreneurship also requires
effective consideration of trust to have proper dealing with social groups and ensure that needs of
community is being developed in appropriate manner (Kuppuswamy and Bayus, 2015, pp.20-
21).
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