Over the past ten years crowdfunding has emerged as an alternative investment form and a new way to raise funds. Project funders increasingly try to raise funds from a crowd through the internet. Therefore, the “crowd”, also referred to as “backers” play the key role in a successful funding process.
The literature on crowdfunding examines the different crowdfunding types and their benefits for backers. The literature on the German culture and crowdfunding in Germany will be presented. Using a questionnaire, this study aims to identify benefits which motivate people living in Germany to invest in a particular crowdfunding type. Subsequently, the study evaluates the four main crowdfunding types and which motivate potential backers most to invest into crowdfunding based on the benefits they are offering. All participants of the questionnaire are German residents.
The analysis of the questionnaire’s collected quantitative data reveals that the benefits people receive from the participation in rewards-based crowd-funding, such as receiving a final product before the official product launch and actively participating in the realisation of a crowdfunding project have a huge motivational impact on people to invest in crowdfunding. Moreover, the analysis from the gathered data showed that not receiving any benefits from participation in donation-based crowdfunding mostly discouraged the participants in this study. Thus, people living in Germany mostly expect benefits for investing their money. Moreover, the motivations vary within different age groups.
This study identifies limitations that occur using the chosen sampling method and closes with recommendations for further research.
Table of Contents
1 Introduction
1.1 Research topic
1.2 Research objectives and question
1.3 Dissertation Structure
1.3.1 Chapter 2 – Literature Review
1.3.2 Chapter 3 – Methodology
1.3.3 Chapter 4 – Analysis and Findings
1.3.4 Chapter 5 – Conclusions
2 Literature Review
2.1 Introduction
2.2 Definition of Crowdfunding
2.2.1 Motivations of and benefits for Backers
2.2.2 Crowdfunding web-sites and their differences
2.2.3 Rewards-based crowdfunding
2.2.4 Equity-based crowdfunding
2.2.5 Lending-based crowdfunding
2.2.6 Donation-based crowdfunding
2.3 German Culture
2.3.1 Crowdfunding in Germany
2.4 Limited Literature
2.5 Hypothesis
3 Methodology
3.1 Introduction
3.2 Research Approach
3.3 Research Strategy
3.3.1 Qualitative Research
3.3.2 Quantitative Research
3.4 Questionnaire
3.5 Sampling
3.6 Data Analysis
3.7 Limitations
3.8 Ethical Considerations
3.9 Chapter Summary
4 Analysis and Findings
4.1 Introduction
4.2 Questionnaire
4.2.1 Research demographic
4.3 How well-known crowdfunding is in Germany depending on the residents age
4.4 Preferred crowdfunding type based on the benefits
4.5 Specific benefits within crowdfunding projects
4.6 The preferred crowdfunding type in Germany depending on the residents age
5 Conclusion
5.1 Introduction
5.2 Answering the research question
5.3 Review of the research objectives
5.4 Limitations of the conclusions
5.5 Suggestions for further research
Research Objectives and Main Themes
This study aims to investigate the motivational factors that encourage German residents to participate in various types of crowdfunding campaigns. The primary research question is: “Which crowdfunding type with its benefits motivates German residents the most to invest in a crowdfunding project?”
- Analysis of general awareness of crowdfunding in Germany across different age groups.
- Evaluation of the four main crowdfunding types: rewards-based, equity-based, lending-based, and donation-based.
- Examination of specific motivational benefits for backers within these crowdfunding categories.
- Assessment of the role of German cultural dimensions in shaping investment motivations.
- Application of quantitative research methods, specifically a questionnaire, to identify correlations between age and investment preferences.
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2.3 German Culture
Cultures in general are built on similar values, ideals and behaviour. However, even though there are similarities between people from one cultural background people still are individuals with own opinions. Culture in general can be analysed through the Hofstede 6D model of cultural dimensions (Hofstede, 2011). The cultural aspects of six dimensions are presented through the Hofstede model and are shown in the diagram below.
Analysing the German culture through the lens of the Hofstede 6D model of cultural dimensions a general overview of the drivers of German culture can be achieved. Supported through a strong middle class Germany can be seen as a country with a low power distance. Direct communication and an aversion for control are common in Germany. With regard to crowdfunding, people are more likely to have a lower power distance to the project founder and are therefore willing to participate in the realisation of the project in a partnership of equals with the founder.
According to the 6D model Germany has a highly individualistic society and self-realisation is highly appreciated. Generally, performance orientation already start at a young age, since children are separated into different types of school based on their grades (Kristen, 2002). Due to a highly individualistic society, people in Germany do put a focus and expectation on individual responsibility. Therefore, having an idea and wanting to realize it is appreciated and supported.
Summary of Chapters
1 Introduction: This chapter provides an overview of the research topic, defines the research objectives and the central research question, and outlines the overall structure of the dissertation.
2 Literature Review: This section reviews existing academic literature on crowdfunding types, backer motivations, and provides an analysis of the German cultural context as it relates to investment behaviour.
3 Methodology: This chapter justifies the choice of a deductive approach and quantitative research strategy, detailing the design of the online questionnaire and the sampling method used to gather primary data.
4 Analysis and Findings: This section presents the gathered quantitative data, applies statistical analysis to test the hypotheses, and evaluates the motivational influence of various benefits across different age groups.
5 Conclusion: This chapter summarizes the research results, answers the research question, evaluates the fulfilment of the research objectives, and offers recommendations for future study.
Key Words
Crowdfunding, Motivation, Investment, German Culture, Backers, Rewards-based Crowdfunding, Equity-based Crowdfunding, Lending-based Crowdfunding, Donation-based Crowdfunding, Quantitative Research, Questionnaire, Age Groups, Statistical Analysis, Awareness, Sustainability
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on identifying the specific benefits that motivate German residents to invest in various crowdfunding models.
What are the core themes explored in this study?
The core themes include the definition and classification of crowdfunding types, the motivational drivers for backers, the impact of German cultural dimensions, and the demographic factors influencing investment behaviour.
What is the main research question?
The study seeks to answer: “Which crowdfunding type with its benefits motivates German residents the most to invest in a crowdfunding project?”
Which scientific method does the author employ?
The author utilizes a deductive research approach and a quantitative strategy, collecting primary data through a self-administered online questionnaire distributed to German residents.
What does the main body of the work address?
The main body examines literature regarding crowdfunding, provides a cultural analysis of Germany, and conducts an empirical analysis of survey data to identify correlations between age, benefit perception, and crowdfunding preferences.
What key concepts characterize this dissertation?
Key concepts include backer motivations, reward structures in crowdfunding, German cultural values such as individualism and power distance, and the statistical association between participant age and investment likelihood.
Why are material and immaterial rewards significant in the German context?
The study finds that, in a masculine society like Germany, material success is valued, making tangible rewards like receiving a product before the official launch highly effective in motivating investors.
How does age affect the awareness of crowdfunding?
The findings indicate a statistically significant association between age and awareness, with younger generations (18-45) showing substantially higher knowledge of crowdfunding compared to those aged 56 and older.
What did the analysis reveal about donation-based crowdfunding?
The data suggests that younger age groups are more inclined to participate in donation-based projects, particularly those that offer a sense of altruism or address issues of global importance.
- Citar trabajo
- Anonym (Autor), 2018, Crowdfunding as an alternative investment opportunity in Germany, Múnich, GRIN Verlag, https://www.grin.com/document/432149
