Cultural differences and crowdfunding: a four-country study

Abstract

Entrepreneurial activity is important for the economic growth of nations. To
promote the launch of entrepreneurial ventures it is critical the availability of funding
mechanisms. Crowdfunding (CF) offers a platform that allows entrepreneurs to interact with
funders and generate value through the creation of new ventures. This new tool is based on
internet and information technologies that facilitate the participation of the “crowd” to fund
entrepreneurial projects. Despite its importance, the availability of CF platforms and their
level of market penetration varies in different countries. The aim of this study is to examine
whether national culture as measured by the Hofstede’s framework is associated with the
level of knowledge and the predisposition to use CF. To attain this aim we used data from an
online survey administered in four countries (Portugal, Brazil, Germany and North
Macedonia) among well-qualified students to examine the degree of association with the
cultural dimensions of Hofstede (power distance, individualism/collectivism,
masculinity/femininity, uncertainty avoidance, short term/long term orientation, indulgence).
The investigation draws on data for 251 respondents from the four countries. The results
reveal that there are cultural differences in how individuals understand and are able to use CF.
Specifically, the knowledge individuals have about CF is positively related with the countries’
level of masculinity and individualism, and negatively associated with power distance and uncertainty avoidance national characteristics. At the same time, the predisposition to use CF
is positively linked to the countries’ indulgence dimension.