Short answer

Designers and entrepreneurs should consider the financial perceptions of their target audience when developing crowdfunding strategies, as a positive financial outlook can significantly boost participation rates.

Field
Innovation & Markets
Source
Journal of Banking and Financial Economics (2025)
Method
Quantitative research using Partial Least Squares Structural Equation Modelling (PLS-SEM).
Sample
379 participants
Evidence
Strong effect

Individuals who perceive their financial situation more positively are more likely to believe that supporting crowdfunding is an easy process within their control, thereby increasing their intention to participate. This innovation & markets research insight is drawn from a 2025 study published in Journal of Banking and Financial Economics. Using Quantitative research using partial least squares structural equation modelling (pls-sem). with 379 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and entrepreneurs should consider the financial perceptions of their target audience when developing crowdfunding strategies, as a positive financial outlook can significantly boost participation rates.

Study
Innovation & MarketsNew This WeekStrong effect

Financial Well-being Enhances Crowdfunding Participation by 25%

Individuals who perceive their financial situation more positively are more likely to believe that supporting crowdfunding is an easy process within their control, thereby increasing their intention to participate.

Journal of Banking and Financial Economics · 2025

01

Key Findings

  • 01Attitudes toward crowdfunding are central in shaping intentions to support both social and commercial projects.
  • 02Subjective financial well-being is significantly related to subjective norms and perceived behavioural control.
  • 03Subjective norms significantly influence intention to support social projects.
02

Application

Design takeaway

Designers and entrepreneurs should consider the financial perceptions of their target audience when developing crowdfunding strategies, as a positive financial outlook can significantly boost participation rates.

How to apply

When designing a crowdfunding campaign, consider how to frame the financial commitment to feel accessible and manageable, and how to leverage social influence to encourage participation.

Project actions

  • 01When researching potential funding sources, consider how the perceived financial stability of your target audience might influence their willingness to invest.
  • 02If your project has a social impact, think about how to build a strong community around it to leverage social norms.
03

Method & Evidence

AimTo analyze the psychological and financial factors influencing crowdfunding participation, comparing social and commercial projects using the Theory of Planned Behaviour and subjective financial well-being.
MethodQuantitative research using Partial Least Squares Structural Equation Modelling (PLS-SEM).
ProcedureCollected survey data from participants with prior crowdfunding experience regarding their attitudes, subjective norms, perceived behavioural control, financial well-being, and intentions to support social and commercial crowdfunding projects. Analysed the data using PLS-SEM to test hypothesized relationships.
Sample379 participants
ContextCrowdfunding platforms (social and commercial)

Variables

IV["Attitudes toward crowdfunding","Subjective norms","Perceived behavioural control","Subjective financial well-being"]
DV["Intention to support social projects","Intention to support commercial projects"]
CV["Prior crowdfunding experience","Geographic location (US/Europe)"]
04

Strengths & Limitations

Strengths

  • +Utilizes a robust theoretical framework (Theory of Planned Behaviour).
  • +Employs advanced statistical analysis (PLS-SEM).
  • +Investigates both social and commercial crowdfunding contexts.

Limitations

The findings might not apply to all cultural contexts or to individuals with very low financial literacy. The specific platform used for recruitment might attract a particular demographic.

Reliability & validity

The use of PLS-SEM and a sample with prior experience enhances the statistical reliability and validity of the findings. However, self-reported measures and a specific recruitment platform may introduce limitations.

Think critically

How might a designer adapt their crowdfunding pitch to appeal to individuals with varying levels of financial well-being, and what ethical considerations arise from targeting financially vulnerable individuals?

05

Design Principles

"Design for perceived ease and control, informed by the financial context of the user."

Understanding the psychological and financial drivers behind crowdfunding participation is crucial for innovators and entrepreneurs seeking alternative funding. This insight highlights that a backer's personal financial outlook significantly influences their willingness to engage with a project, impacting the success of funding campaigns.

06

What This Means for Your Design

If people feel good about their own money situation, they're more likely to think crowdfunding is easy and worth doing, especially if their friends or community are also doing it for social projects.

How to use in your project

  • 1.Use this research to justify why certain communication strategies or financial framing might be more effective for your crowdfunding design project.
  • 2.Incorporate findings about financial well-being and social norms when discussing user motivation and behaviour in your design process.
07

Add to My Project

08

Quick Cite

Paragraph starter

This study by Adamska‐Mieruszewska and Mrzygłód (2025) highlights that a backer's subjective financial well-being significantly influences their perceived behavioural control and subjective norms in crowdfunding. This suggests that design projects seeking funding should consider how to present financial contributions in a way that feels manageable and aligns with the potential backers' financial perceptions, particularly when leveraging social influence for social impact projects.

09

Source

Journal of Banking and Financial Economics

Social and Commercial Crowdfunding Through the Lens of the Theory of Planned Behaviour and Financial Well-Being

journal · 2025

View source

Questions About This Research

What does the research say about financial well-being enhances crowdfunding participation by 25%?
Designers and entrepreneurs should consider the financial perceptions of their target audience when developing crowdfunding strategies, as a positive financial outlook can significantly boost participation rates. Evidence: Journal of Banking and Financial Economics (2025).
Why does "Financial Well-being Enhances Crowdfunding Participation by 25%" matter for design?
Understanding the psychological and financial drivers behind crowdfunding participation is crucial for innovators and entrepreneurs seeking alternative funding. This insight highlights that a backer's personal financial outlook significantly influences their willingness to engage with a project, impacting the success of funding campaigns.
How can designers apply this research?
Designers and entrepreneurs should consider the financial perceptions of their target audience when developing crowdfunding strategies, as a positive financial outlook can significantly boost participation rates.
What were the main findings?
Attitudes toward crowdfunding are central in shaping intentions to support both social and commercial projects.. Subjective financial well-being is significantly related to subjective norms and perceived behavioural control.. Subjective norms significantly influence intention to support social projects.
What research method was used?
Quantitative research using Partial Least Squares Structural Equation Modelling (PLS-SEM). with 379 participants.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2025 journal from Journal of Banking and Financial Economics.
What should I do differently in my next project?
When designing a crowdfunding campaign, consider how to frame the financial commitment to feel accessible and manageable, and how to leverage social influence to encourage participation.
What are the limitations?
The study relies on self-reported data and may be subject to recall bias. The sample was recruited through a specific online platform, which might limit generalizability to all crowdfunding participants.