Where Does the Crowd Fund – And How Does It Matter to Regional Entrepreneurship?

33 Pages Posted: 26 Feb 2020

See all articles by Sandy Yu

Sandy Yu

University of Minnesota - Twin Cities - Carlson School of Management

Lee Fleming

Harvard University - Technology & Operations Management Unit

Date Written: January 29, 2020

Abstract

Where does crowdfunding occur and what impact does it have on new firm starts and regional entrepreneurship? We find that crowdfunding occurs more often in regions with greater population, foreign born, and college educated and attending residents, and less often in regions with higher median household income, low educational attainment, and middle-aged residents. Clustering regions by these same variables, we find an increasing disparity in per capita crowdfunding in large cities relative to smaller cities, college towns, and poor regions with weak human capital. CF appears to precede regional entrepreneurship, yet that effect comes mainly from the less urban regions with less CF. While CF occurs less in the communities that might benefit most from it, it has greater impact when it does.

Keywords: crowdfunding, entrepreneurship, regional economics, measures

Suggested Citation

Yu, Sandy and Fleming, Lee, Where Does the Crowd Fund – And How Does It Matter to Regional Entrepreneurship? (January 29, 2020). Available at SSRN: https://ssrn.com/abstract=3527704 or http://dx.doi.org/10.2139/ssrn.3527704

Sandy Yu (Contact Author)

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Lee Fleming

Harvard University - Technology & Operations Management Unit ( email )

Boston, MA 02163
United States
617 495 6613 (Phone)
617 496 5265 (Fax)

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