Mechanism and policy combination of technical sustainable entrepreneurship crowdfunding in China: A system dynamics analysis

Abstract

In the subprime crisis era, China's economy needs sustainable development. Sustainable entrepreneurship is regarded as the main power for sustainability while shortage of funds extremely restricts the development of sustainable entrepreneurship. Crowdfunding, as a financing platform on the Internet, provides a new solution for sustainable entrepreneurship project to raise money. This paper focuses on the sustainable entrepreneurship projects rely on technology in crowdfunding. We choose totally 63 cases from U.S. and China to carry out the bench analysis in order to find out the critical success factors of sustainable entrepreneurship projects pledging as well as figure out the relationships among each indicator. The statistics analysis of the cases indicates that public opinion and brand effect significant influence the sustainable crowdfunding. The amount of money raised in Chinese sustainable crowdfunding only relies on the number of backers. Furthermore, in order to investigate the social and economic effect on sustainable crowdfunding in China, we build a system dynamic model to simulate the development of sustainable crowdfunding and the influence of government policies. The simulation results show that policy combinations can effectively promote the crowdfunding, which attract more sustainable entrepreneurs to provide sustainable products/services. This in turn promotes the sustainable development and social-economic benefits in China. According to the findings, managerial suggestions and future works are discussed.