Researching The Risks Of Utilising Pre-Purchase-Based/Reward Based Crowdfunding And Identifying Possible Mitigation Strategies.
[Dissertation (University of Nottingham only)]
Title: Researching The Risks Of Utilising Pre-Purchase-Based/Reward Based Crowdfunding And Identifying Possible Mitigation Strategies
Date: Friday, 20th September 2013
Course: MSc Risk Management
Author: Sebastian Pigge
Supervisor: Andrew Greenman
Keywords: Crowdfunding, crowdsourcing, entrepreneurship, finance, funding, pre-purchase, rewards, risk, reputation, issues and threats
Dissertation Purpose: This dissertation investigates the risks entrepreneurs face when using reward-based crowdfunding platforms and ways of mitigating these risks. Topic areas include funding, production, market testing, reputation and legal.
Theoretical Sources: This dissertation is grounded on the limited academic literature surrounding crowdfunding, as well as on relevant risk management theories in the fields of finance, production, marketing, law and reputational management.
Methodology: Qualitative exploration of the perceived and actual risks entrepreneurs encounter. Data was gathered by means of face-to-face interviews, e-mail interviews as well as analysis of crowdfunding projects, blogs, news and guides.
Analysis: From the gathered data, risks were grouped into categories and analysed. Using real world examples, the severity of the risks was described. Where possible, risk mitigation methods have been identified.
Conclusion: The findings confirm that reward based funding is fraught with risks and that if not managed effectively can result in severe reputational, financial and even legal damages. While there are always risk when doing business, it is important to know what risks one might face in order to mitigate these effectively.
Dissertation (University of Nottingham only)
||Crowdfunding, crowdsourcing, entrepreneurship, finance, funding, pre-purchase, rewards, risk, reputation, issues and threats
||28 Mar 2014 16:17
||15 Sep 2016 01:54
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