Weekly Topic: What is Crowdsourcing and Crowdfunding? Are they the same?
In era filled with fake news, what effect can this have on crowdsourced information? Can crowdsourcing actually overtake traditional funding mechanism for the creative industries? In times of need (social and political), can social media movement like #Pulangmengundi (Crowdsourcing and crowdfunding transportation to mobilize youths to vote benefit communities?
According to Hargrave (2019), crowdsourcing is people who works which involving work information or opinion from a large group of people who submit their data on the internet such as the social media and smartphones application. It is a task on the voluntary basis or sometimes freelancers will get paid by participating in the crowdsourcing. For example, Waze is the traffic application, which encourage the drivers to reports on the traffic, accidents or incident which provide the real-time updated information to the application users.
Based on Smith (2019), crowdfunding is the process of raising funding online. In the vast networks like social media, crowdfunding can make use of the easy accessibilities on social media. Besides, in social media, the crowdfunding websites can easily bring the investor and entrepreneurs together which has potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives and venture capabilities. For example, of crowdfunding websites are Kickstarter and IndieGoGo has attract hundreds of thousand people invest in the huge project. There are three types of crowdfunding which Is donation-based crowdfunding, reward-based crowdfunding and equity-based crowdfunding (Miller, 2019). Donation based crowdfunding is a campaign in which there is no financial return to the investor or contributors. For example, of fundraising is for disaster relief, charities, non-profit and medical bills. On the other hand, reward-based crowdfunding involved individual contributing to the business in exchange for reward for example the product or the services the company offer, however there is no financial or equity return. This approach is popular option in platforms like Kickstarter and Indiegogo. Lastly, the equity-based crowdfunding is the campaign that allows the contributors to become part-owners of the company by trading capital for equity shares. The contributors will receive a share of the profits in the form of dividend and distributions.
In era filled with fake news, what effect can this have on crowdsourced information?
In the era of modern technology, there are a lot of fake news going viral on social media where most people love to believe it without further investigation. Besides, crowdsourced are still in investigation to prevent more fake news. The effect on crowdsourced are people will believe the false news in social media like Facebook, Twitter and Reddit and more. However, there is advantages of crowdsourcing for company and organization which it can benefit the organization to engage people across the enterprise, it can cultivate a culture of innovation, combat disruption with employee brainpower, invite customers to contribute ideas and embrace new methods of driving growths through innovation (Tucker 2019). However, there is also disadvantages which crowdsourcing can be subjective or error-prone which it can be time-consuming, and it can be relatively costly where human need to be paid (Marcus et al. 2013)
Can crowdsourcing actually overtake traditional funding mechanism for the creative industries?
In my opinion, crowdsourcing can overtake traditional funding mechanism for the creatives industries because crowdsourcing is more widely use in the internet and social media where more people can access to the internet rather than traditional funding mechanism.
In times of need (social and political), can social media movement like #Pulangmengundi (Crowdsourcing and crowdfunding transportation to mobilize youths to vote benefit communities?
In my opinion, social media movement like #Pulangmengundi can be a crowdsourcing and crowdfunding transportation to mobilize youths to vote. Crowdfunding has created an easier online platform for people to access funds and in the event such as #Pulangmengundi, there was a lot of tweets where people want to assist other people (in-term of financial) who studies or work at other countries to come back home and vote for the election day in Malaysia. However, it is also connected with crowdsourcing where people can give their information to strangers who want to assist them in term of financial.
In conclusion, crowdsourcing and crowdfunding are inter related with one another and both aspect can be a social and business interaction.
Hargrave, M 2019, Crowdsourcing, Investopedia, viewed on 30 October 2019, < https://www.investopedia.com/terms/c/crowdsourcing.asp>.
Miller, Z 2019, Which type of crowdfunding should you choose for your business, The Balance, viewed on 30 October 2019, <https://www.thebalancesmb.com/what-type-of-crowdfunding-to-choose-for-business-985191>.
Sethi, J. R 2019, How citizen investigators can collaborate on crowdsourced fact-checking, viewed on 30 October 2019, < https://theconversation.com/how-citizen-investigators-can-collaborate-on-crowdsourced-fact-checking-76890>.
Smith, T 2019, Crowdfunding,Investopedia, viewed on 30 October 2019, < https://www.investopedia.com/terms/c/crowdfunding.asp>.
Tucker, B. R 2017, How Crowdsourcing Can Enhance Innovation Performance, Forbes,<https://www.forbes.com/sites/robertbtucker/2017/06/16/how-crowdsourcing-can-enhance-innovation-performance/#38bd00ee54df>.
