Attention to Detail and Entrepreneurial Success

Abstract

We examine how entrepreneurs’ attention to detail affects their fundraising performance in crowdfunding campaigns as well as other important project outcomes that occur after fundraising campaigns. To test our theoretical model, we conduct two studies: an archival field study with 312,520 rewards-based crowdfunding campaigns and a randomized survey with 792 individual evaluations. Our results indicate that entrepreneurs who have greater attention to detail understand when potential funders’ attention is high and when their tendency to pledge financial resources is strong, and therefore they strategically time their campaigns accordingly. These entrepreneurs are more likely to get funded successfully, to bring products into existence, and to have higher product ratings. Attention-to-detail measures predict entrepreneurial success over and above entrepreneur education and career experience.

Keywords: Entrepreneurial financing, Attention to detail, Crowdfunding, Kickstarter

JEL Classification: D81, D91, G23, G41, L26