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Crowdfunding: Motives, Definitions, Typology and Ethical Challenges

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  • Hossain Mokter

    (Department of Industrial Engineering Management, Institute of Strategy and Venturing, Aalto University, Maarintie 8, 02150 Espoo, Finland)

  • Oparaocha Gospel Onyema

    (Department of Management and Entrepreneurship, Turku School of Economics, University of Turku, Rehtorinpellonkatu 3, 20500 Turku, Finland)

Abstract

Crowdfunding is an emerging phenomenon that has attracted significant interest from scholars and practitioners alike, mainly due to its appeal as an alternative source of funding. As crowdfunding has grown exponentially, so have the associated challenges and opportunities. In this conceptual paper, we define crowdfunding; discuss its characteristics, related terminologies, key elements and ethical issues. We also propose a typology for crowdfunding and indicate various issues associated with it. The final section includes the implications of this study and suggestions for future research. This paper aims to inspire a scholarly debate and further develop the theoretical foundation of the crowdfunding literature. This may also prompt practitioners to take note of the emerging concerns as the crowdfunding phenomenon is transforming from a marginal to a mainstream discipline.

Suggested Citation

  • Hossain Mokter & Oparaocha Gospel Onyema, 2017. "Crowdfunding: Motives, Definitions, Typology and Ethical Challenges," Entrepreneurship Research Journal, De Gruyter, vol. 7(2), pages 1-14, April.
    • Handle: RePEc:bpj:erjour:v:7:y:2017:i:2:p:14:n:1
    DOI: 10.1515/erj-2015-0045
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    References listed on IDEAS

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