Crowdfunding for a small business idea can help you raise capital quickly, market your concept, and get feedback. But what information you include in your fundraising campaign may determine its success, according to a new study.
Recent research published in the Journal of Business Venturing analyzed more than 8,500 crowdfunding campaigns and found that those discussing an entrepreneur’s leisure activities hindered their fundraising efforts. The researchers concluded that an “institutional norm exists pressuring early-stage entrepreneurs to be, or be perceived as, workaholics.”
The study referred to this finding as the “leisure paradox,” as more entrepreneurs are striving for a stronger work-life balance while also putting in long hours to build a business.
The impact of the ‘leisure paradox’ on fundraising
About 20% of small business owners work more than 50 hours a week, according to a 2025 Adobe survey. And while 3 in 5 entrepreneurs report a better work-life balance, most say they still struggle to disconnect.
Past research shows that taking time for leisure activities (or nonwork-related interests or hobbies) is good for entrepreneurs’ mental and physical health, plus it heightens creativity and drives their passion. It can also reduce instances of burnout.
This founder mythology has become an almost required hero’s journey of what it takes to be successful as an entrepreneur. Unfortunately, this narrative can be really harmful to founders, leading to burnout, and ultimately, impacting their health.Katherine Alexander, assistant professor of management at Loyola University Chicago
Even though leisure activities offer many personal and business benefits for entrepreneurs, the latest Business Venturing study shows that when they discuss personal hobbies or interests, investors often perceive entrepreneurs as less legitimate. As a result, investors are less likely to support crowdfunding campaigns that mention leisure activities. On the flip side, the research showed that they were more likely to back crowdfunders who embodied hustle culture.
Researchers noted that investors often misinterpret taking time off as a lack of dedication rather than a strategy for success long term.
“This founder mythology has become an almost required hero’s journey of what it takes to be successful as an entrepreneur,” Katherine Alexander, co-author of the study and an assistant professor of management at Loyola University Chicago, said in a news release. “Unfortunately, this narrative can be really harmful to founders, leading to burnout, and ultimately, impacting their health.”
The study also found that women investors were more tolerant of entrepreneurs discussing leisure activities than male backers.
Telling a compelling story on crowdfunding platforms
Storytelling is a key part of a successful fundraising campaign, and it’s something crowdfunding platforms encourage, with entrepreneurs often sharing personal details about themselves.
However, the authors of the study recommend being “cautious” about what personal information is shared. While you should still enjoy your hobbies and time off, it may be best to leave those details out of your crowdfunding story.
So what should your crowdfunding story include? The University of Rhode Island suggests connecting with backers on a “deeper level” beyond facts and figures. You can do that by answering these questions in your campaign pitch:
- What problem does your product or idea solve?
- How will it help the backer (or your intended customer) in their daily lives?
- What inspired you to come up with the idea?
- What’s special about it?
- Why should they care about it enough to fund it?
- Why should they want to be a part of your story?
Crowdfunding platform Kickstarter suggests also using photos and videos to help tell your story.
Ultimately, your story is how investors connect with your vision and understand why your idea matters. It enables them to see the impact their support can have and feel confident backing your business.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
