The easy and trustworthy nature of crowdfunding is good for enhancing the relationship between stakeholders and the entrepreneur[s]. This relationship is necessary if the business is going to grow and operate within the confines of trust and ethical behaviors. The relationship between the stakeholder and the entrepreneur is explained using the Stakeholder Theory. According to Freeman, stakeholder theory is one that underscores the significance of each stakeholder (employer, employee, shareholder, suppliers, customers, community and the environment) to an organization as opposed to the shareholder only, the manner in which they are affected from a moral and ethical perspective (Freeman, et al. 2010). An entrepreneur’s relationship with all stakeholder Innovation has a big part to play in the financing process, but this does not mean that it is the sole reason. Understanding some of the reasons why financiers contribute funds may help entrepreneurs consider their approach during their campaigns. According to Vachelard, et al. (2016), individuals engage in crowdfunding or campaigns ranges from gaining new products and services, supporting new entrepreneurs, some are usually excited about a new idea, to gain social networks and for social benefit. The authors however, note that ventures that are as a result of innovation suffer from lack of certainty or information imbalance and no one knows whether the innovation will be readily accepted or rejected in the market. Startups experience high cost of capital than established enterprises and for this reason, their most important concern is financing that provides not only fiscal resources but non-pecuniary assistance. Roebuck (2011) notes that scientific studies have focused on the impact of venture capitalist on innovative startup and concluded its predominance in affording fiscal resources over conventional lenders such as banks. Undoubtedly, crowdfunding has a positive effect on the increase of innovative ventures, especially capital ventures where the financier has an active role in the management of the business. Startup However, some may argue that the fact that this is a relatively new phenomenon makes it both certain and risky at the same time. Certain because entrepreneurs are likely to gain resources for their startups and risky because there is little or no form of compensation for the financier, especially if that financier has some equity on the venture. It is also easy to make mistakes with crowdfunding because it does not have definite rules for governing the funding process compared to conventional means. According to Micelli, Ordanini and Parauraman (2009), an analysis of the crowd or the contemporary society as regards to their awareness and their capacity to contribute should be taken into account. The very character of the contemporary society and its knowledge of new technology alongside its involvement allows concepts such as crowdfunding possible. As internet technology increases and advances over time, this has triggered the prevalence of online social media and the ability of social networking to contribute funds for various ventures (Babu, et al. 2013). In other words, crowdsourcing and networking can be applied for the development of crowdfunding. In addition, crowdfunding can apply networking for marketing and promotions of individuals, organizations and brands. The process of crowdfunding accelerates the obtaining of funds during the first stages according to Scholz (2015) because it is
Jim’s responsibility in Tanzania is to invest for financial, social and environmental value for each client. By giving KiraFlour the loan, Jim would be creating financial value for the company’s stakeholders, while creating social and environmental problems...
Stakeholders are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers1. There are several different types of stakeholders associated with a corporation, and those stakeholders can have different views and opinions on what corporation's goals should be and how they should be running. I have interviewed three different stakeholders of Staples Inc., an employee, a customer and a stock holder, to find their relationship between them and the firm. Then, I will use this information to suggest how the firm should proceed and continue to have a better and more beneficial relationship with its stakeholders.
... Crowdfunding is based on quality and innovation, not on profit. A project needs to catch enough interest in order to be realized. This forces innovative architectural concepts. Conclusion The new mechanism = the crowd instead of the old centralized organizations plus the new driver = the quality instead of profit eventually leads to a new highly participatory society redefining our own relationship to the environment.
My second article is, Technology Tutor:” Bring your idea to life through crowdfunding.” by Rob Reinhardt. Crowdfunding is the process of raising money for a project from a large number of people usually through the internet. In some instances crowdfunding is a form of presale, giving people the opportunity to order the product before it actually exists. The person or company with the idea can pay for the manufacture of the product with the funds being raised while also making a profit, thus raising capital for continued production. There are currently more than 500 crowdfunding websites in existence. I learned that in order to have a successful campaign you need a large number of people,
For a long time the ways that non-profit organizations raise money was the same. They used solicitation letters as a way to reach out and engage new audiences to financially support their organizations. Then with the rise of the internet, they were able to use mass emails. Now there is an even newer form of technology that allows organizations to fundraise and gain new audiences. This new medium is social media. Stone brings up some good points about using social media to fundraise. He quotes Stannard-Stockton, chief executive of Tactical Philanthropy Advisors, as saying, “It’s pretty well documented that social media is by no means an easy way to raise money, but it is a rather fantastic way to build a network of supporters.” Using a few other articles this paper will explore how nonprofits need to properly use social media and how it can help their organizations in return.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
The case study is about an interview, conducted to four venture capitalists from four of the most prominent VC Silicon Valley firms, Kleiner Perkins Caufield & Byers (KPCB), Menlo Ventures, Trinity Ventures and Alta Partners. These firms invest both in seed as well as in later-stage companies, which operate mostly in the information technology sector. However, each VC has developed different sector portfolio depending on the expertise of the venture capitalists, the partner network and other factors. Professor Mike Roberts and Lauren Barley a senior research associate, both from Harvard Business School, have made a series of seven questions to their interviewees to understand how they evaluate potential venture opportunities and what they look at in order to decide if they will fund them and in which way. The questions were dealing with how VC’s evaluate potential venture opportunities, how they conduct due diligence, what process id followed for the decision making, what financial analyses is performed, the role of risk in the evaluation and how they think of potential exit routes. These questions were asked individually and revealed several similarities as well as differences in the strategy and the criteria that are used for the evaluation.
Adelman, P. J., & Marks, A. M. (2010). Entrepreneurial finance. (5 ed.). Bedford, Texas: Prentice Hall.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Crowdfunding provides a hope to individuals who are looking for investments for innovative ideas and also for both current and future technologies. Crowdfunding isn't reinventing the wheel regarding raising support. Rather it utilizes cutting edge innovation to make raising support more effective. This evolutionary methodology of capital portion takes after the same sort of authe...
Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.
requires a precise mix of intellectual and technical resources. Seed is the first stage of venture capital
Indrupati, J., & Henari, T. (2012). Entrepreneurial success, using online social networking: Evaluation. Education, Business and Society: Contemporary Middle Eastern Issues, 5(1), 47-62. doi:http://dx.doi.org/10.1108/17537981211225853
Studying Banking and Finance at University of St.Gallen will help me further increase my proficiency in corporate finance and financial markets. The in-depth research of specific topics, as well as a comprehensive curriculum, is a possibility for me to focus on my topic of interest – the mechanisms and institutions involved in providing venture capital and identifying angel investors as means to encourage innovation.... ... middle of paper ... ...