Crowdfunding to overcome the liability of outsidership: Drivers of immigrant entrepreneurs’ fundraising performance

Présentation de Diego USECHE (CREM, Université Rennes 1)

Diego Useche (CREM, Université Rennes 1)
En coll. avec Vincenzo Butticè, DIG, Politecnico di Milano

Abstract :
This paper examines the drivers of immigrant entrepreneurs’ performance in crowdfunding activity. Drawing on the immigrant entrepreneur and crowdfunding literatures, and using data from 2,231 Kickstarter campaigns, we explore the boundary conditions which allow some migrant entrepreneurs to perform better than their local-born peers. We suggest and show that crowdfunding, by allowing immigrant entrepreneurs to develop their own digital networks within a platform and retain their home-country networks, constitutes an attractive mechanism to finance their projects. Our results suggest also that high-skilled immigrants are better placed to tap into different networks and outperform their local-born peers. Finally, we show that low-skilled migrants also can outperform local born peers, and by developing a network within the platform achieve performance comparable to that of high skilled immigrant entrepreneurs.