Signals Affecting Crowdfunding Success for Australian Social Enterprises

This study adopted the signalling theory and suggests that Australian social enterprises can achieve crowdfunding success through different combinations of costly signals - expensive (in resources) to obtain signals and costless signals - less expensive (in resources) to obtain signals. Using qualitative comparative analysis, this study examined crowdfunding campaigns run by Australian social enterprises and concluded that (1) different combinations of costly and costless signals can lead to crowdfunding success, (2) costless signals of campaign preparedness are fundamental and (3) third-party endorsement is necessary for crowdfunding success. These results should assist Australian social enterprises to achieve crowdfunding success using proposed combinations of signals suited to their circumstances.