The Impact of Word Choice on Crowdfunding Success

Crowdfunding has gained popularity among entrepreneurs who seek funding for their business projects on crowdfunding platforms. The success of these campaigns largely depends on convincing numerous backers to support the fundraising initiative. Effective communication, informed by signalling, persuasion, and attribution theories, is an efficient strategy that attracts potential investors and backers to ensure a campaign’s success. The study assessed how the length of the project description affects the success of crowdfunding projects in Africa. The study utilised econometric techniques such as ordinary least squares and logistic regression models. The unit of analysis comprised 854 African small and medium enterprises and entrepreneurial projects collected from Kickstarter, Indiegogo, and Fundraised databases. The findings show that longer project descriptions and more backers are linked to higher success in crowdfunding. On the other hand, having flexible funding options and setting higher funding targets decreases the likelihood of success. These results support the attribution and persuasion theories, indicating that detailed project descriptions can address information gaps and improve the project’s credibility and trustworthiness. The study adds to the existing body of knowledge by providing a specific understanding of the diverse linguistic and cultural environment. It does so by extensively exploring the linguistic and cultural nuances of word choice and storytelling techniques unique to African crowdfunding campaigns, which contrasts with previous studies. The study offers valuable theoretical and practical insights for entrepreneurs and investors.