Identify affecting Incentives of investor participation in crowdfunding for social innovation (Case study: collective votive )

Subject Areas : Journal of Iranian Social Development Studies

Ali Asghar Sadabadi ¹ , Fatemeh Jafarian ² , Zohreh Rahimi Rad ³

1 - Assistant Professor Shahid Beheshti University
2 - Shahid Beheshti University
3 - University Of Mazandaran

Received: 2022-05-08 Accepted : 2022-08-14 Published : 2022-05-22

Keywords: Incentives, Social Innovation, Donation Based Crowdfunding, social participation, Investors,

Abstract :

Subject: Discovering the decision-making motivations of investors is always one of the most fundamental issues in business. Crowdfunding is introduced as a solution to the problem of financing social businesses and solving social problems with small contributions from many people. Identifying the motivations that affect investors' participation in crowdfunding, helps entrepreneurs and policymakers to use that for increasing the number of crowdfunding.Objective: The purpose of this research is to identify the motivations that encourage investors to participate in the donation-based crowdfunding process.Research Method: first by using literature and then semi-structured interview with the participants; Effective motivations were extracted. Further, through action research, the case study of Salam center's " collective votive " in the month of Muharram was investigated in order to identify the motivations appropriate to Iran.Results : Incentives effective on investors' decision-making were categorized in two levels, personal and social, and a total of 13 effective incentives on investors' participation in the crowdfunding project without tangible returns were introduced.Conclusion: According to the results of studies, a comprehensive understanding of how to investment decisions are made, helps founders to increase the success rate by providing all the necessary information to potential investors. This research enriches the literature of donation-based crowdfunding in the field of social innovation for developing countries by providing effective incentives for investors' participation.