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Category Archives: L26

The Effect of Social, Cultural, and Political Values on Entrepreneurial Perceptions and Venture Creation: A Global Investigation

By Repton Salisbury

The effect of entrepreneurial activity on economic development has been researched thoroughly. New firm creation spurs economic growth by creating employment opportunities, cultivating innovation, and encouraging competition. Globally, there are countless areas that could benefit from a livelier entrepreneurial ecosystem. So how does a government or population first spur entrepreneurial activity? An entrepreneur’s perceptions are among the most powerful factors that impact the life or death of a new venture, but the determinants that influence how these perceptions first form are still largely unknown. Using survey data collected by the Global Entrepreneurship Monitor in 2010 across the United States, Japan, Switzerland, Israel, United Kingdom, Peru, Russia, Iran, and China, I conduct binary logistic regressions of individual level characteristics, social ideals, cultural norms, human development, and other environmental attributes on the most important perceptions of entrepreneurs. These perceptions have been identified by previous research as an entrepreneur’s perception of local opportunities, internal skills, and fear of failure in creating a new venture. I find that several social, cultural, and political values have a significant effect on the psychological behavior of nascent entrepreneurs.

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Advisor: Alison Hagy, Grace Kim | JEL Codes: L2, L26, O17 | Tagged: Culture, Entrepreneurship, Perceptions, Venture Creation

How does being a Serial Creator affect Probability of Campaign Success on Kickstarter?

By Minn Khine

This paper seeks to address the issue of how being a serial creator impacts campaign success on Kickstarter. My hypothesis is that being a serial creator – someone who has created 2 or more projects on Kickstarter – has a positive effect on probability of campaign success but there are diminishing marginal returns to this effect. A regression analysis over a sample of over 187 thousand Kickstarter projects from its inception in 2008 until December 2014 yields the following findings, which supports my hypothesis. I found that being a serial creator does have a positive effect on campaign success but there is diminishing marginal returns to being a serial creator. Furthermore, number of updates, number of reward levels, having a video, number of backers, FB Shares, FB Friends, and Number of Projects Backed all have positive effects on campaign success. On the other hand, comments, funding goal, and duration have negative effects on campaign success. The effect of the Fed Fund Rate on campaign success is inconclusive. In terms of how project characteristics and creator characteristics affect first time creators and serial creators differently, I found that Updates, Video, FBShares, FBFriends, and Goal matter less as number of projects created increases, in other words, for serial creators who’ve gathered more project experience. On the other hand, Rewards, Backers, ProjectsBacked, Comments, and Duration matter more as number of projects created increases.

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Advisor: Edward Tower, Grace Kim | JEL Codes: G21, G24, L26 | Tagged: Crowdfunding, Kickstarter, Serial creator

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