The Role of Charismatic Rhetoric in Crowdfunding: An Examination with Computer-Aided Text Analysis

Abstract

Purpose

Social entrepreneurs often make public appeals for funding to investors who are motivated by nonfinancial considerations. This emerging research context is an opportunity for researchers to expand the bounds of entrepreneurship theory. To do so, we require appropriate research tools. In this chapter, we show how computer-aided text analysis (CATA) can be applied to advance social entrepreneurship research. We demonstrate how CATA is well suited to analyze the public appeals for resources made by entrepreneurs, provide insight into the rationale of social lenders, and overcome challenges associated with traditional survey methods.

Method

We illustrate the advantages of CATA by examining how charismatic language in 13,000 entrepreneurial narratives provided by entrepreneurs in developing countries influences funding speed from social lenders. CATA is used to assess the eight dimensions of charismatic rhetoric.

Findings

We find that four of the dimensions of charismatic rhetoric examined were important in predicting funding outcomes for entrepreneurs.

Implications

Data collection and sample size are important challenges facing social entrepreneurship research. This chapter demonstrates how CATA techniques can be used to collect valuable data and increase sample size. This chapter also examines how the rhetoric used by entrepreneurs impacts their fundraising efforts.

Citation

Anglin, A.H., Allison, T.H., McKenny, A.F. and Busenitz, L.W. (2014), "The Role of Charismatic Rhetoric in Crowdfunding: An Examination with Computer-Aided Text Analysis", Social Entrepreneurship and Research Methods (Research Methodology in Strategy and Management, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 19-48. https://doi.org/10.1108/S1479-838720140000009010