Determinants of crowdfunding success of entrepreneurs and small and medium enterprises : empirical evidence from Africa

Abstract

Access to finance for small and medium enterprises and entrepreneurs has always been challenging. Traditional financial institutions consider SMEs a high risk to finance them due to their lack of collateral required for funding. However, it is widely agreed that SMEs are crucial for job creation, economic growth and development. In response to this problem, crowdfunding has emerged as a low-cost alternative for accessing finance for innovative ideas that require funding. Through crowdfunding campaigns, entrepreneurs can seek financial support for their projects. However, the success of crowdfunding projects is not guaranteed as multiple factors influence it. Most studies on crowdfunding have primarily focused on developed economies, with minimal research conducted in the African context. Because it requires considering the different socioeconomic conditions, cultural differences, and infrastructure challenges which have a major impact on the success of crowdfunding for both entrepreneurs and SMEs, research conducted in the African environment is significant. Altogether reliance on studies from the developed world lacks the unique dynamics and problems that dominate Africa, which could result in plans and solutions that are not successful. As a result, conducting empirical research with a dedicated focus on Africa is essential to fill this gap and provide actionable insights for supporting the growth and success of SMEs and entrepreneurs in the region's crowdfunding ecosystem. Additionally, these studies have rarely utilised cross-country data and have been limited to analysing projects from single crowdfunding platforms and country-specific concepts, primarily focusing on theory formulation. Cross-country data allows studies to identify similarities and differences between African countries, providing an expanded understanding of the factors influencing crowdfunding success in the region. Therefore, the research objectives of this study were as follows: Firstly, to empirically examine the determinants of crowdfunding success for SMEs and entrepreneurs in Africa. Secondly, to investigate the influence of an entrepreneur’s experience on crowdfunding success. Thirdly, to analyse the impact of tangible and intangible rewards on crowdfunding success. Fourthly, it was to explore the role of social networks in crowdfunding success. Hence, conducting empirical research addressing these gaps is imperative to provide insights essential for fostering the growth and prosperity of SMEs and entrepreneurs within Africa's crowdfunding ecosystem. Therefore A quantitative research approach was employed to address the research gap, and logistic regression was conducted. Cross-sectional data were collected, which included 1847 crowdfunding projects from multiple crowdfunding platforms in 54 African countries, spanning the period from 2018 to 2020. The findings revealed several factors that were positively associated with crowdfunding success. These factors included the use of images, videos, updates, frequently asked questions and backers. Conversely, comments, duration and targeted amount negatively affected crowdfunding success. Furthermore, the entrepreneur's experience was found to positively influence crowdfunding success. The presence of rewards was also found to positively influence crowdfunding success, as well as the presence of a social network. The main contribution of this study is its empirical examination of the determinants of crowdfunding success in Africa, as less comparable studies in the African context are limited to conceptual. The study used multiple methods and theories, providing valuable insights for entrepreneurs, policymakers, and crowdfunding platforms. These insights can help improve the success rate of crowdfunding campaigns in Africa. The findings of the study are also consistent with the signal, agency, bank market structure and financial intermediary theories. These findings enhance academic research and have practical implications for entrepreneurs, investors, policymakers, and crowdfunding platforms that operate in Africa. The study proffers policy advice to African governments to pursue policies that promote investment to improve the technological infrastructure necessary for secure crowdfunding platforms

Phihlelelo ye nnyane ya ditšhelete ya dikgwebo tse nnyane le tša magareng (diSME) le bakgwebi e tšweletša tlhohlo. Ditheo tša ditšhelete tša setšo di tšea diSME go ba tše di lego kotsing ye kgolo ka lebaka la tlhokego ya tiišeletšo ye e nyakegago ya thušo ya ditšhelete. Le ge go le bjalo, go dumelelanwe gagolo ka gore diSME di bohlokwa go tlholo ya mešomo, kgolo ya ikonomi le tlhabollo. Go araba bothata bjo, kgoboketšo ya meneelo e tšweletše bjalo ka mokgwa wo mongwe wa tshenyegalelo ya fase ya go hweletša dikgopolo tša boitlhamelo tšhelete. Ka masolo a kgoboketšo ya meneelo ya lešaba, batho ba ka nyakela diprotšeke tša bona thekgo ya ditšhelete. Le ge go le bjalo, katlego ya diprotšeke tša kgoboketšo ya meneelo ya lešaba ga e kgonthišešwe ka ge e huetšwa ke mabaka a mantši. Bontši bja dinyakišišo ka ga kgoboketšo ya meneelo ya lešaba di šeditše kudu diikonoming tše di hlabologilego, gomme dinyakišišo tše nnyane di dirilwe ka gare ga maemo a Afrika. Go tlaleletša, dinyakišišo tše ke ka sewelo moo di šomišitšego datha ya go selaganya dinaga gomme di felela go tshekaseko ya diprotšeke go tšwa go dipolatefomo tše tee tša kgoboketšo ya meneelo ya lešaba le dikgopolo tše di itšego tša naga, kudu tša go šetša go tlhamo ya teori. Bjalo, maikemišetšo a nyakišišo a nyakišišo ye e be e le a a latelago: Sa mathomo, go sekaseka mabaka ka maitemogelo ao a laolago katlego ya go thuša ka ditšhelete tša lešaba diSME le bagwebi ka Afrika; sa bobedi, go nyakišiša khuetšo ya maitemogelo a mogwebi go katlego ya kgoboketšo ya moneelo ya lešaba; sa boraro, go sekaseka khuetšo ya diriwate ye e bonagalago le ye e sa bonagalego go katlego ya kgoboketso ya moneelo ya lešaba; le, sa bone, go sekaseka tema yeo e kgathwago ke dineteweke tša leago katlegong ya kgoboketšo ya meneelo ya lešaba. Go rarolla sekgoba sa nyakišišo, go šomišitšwe mokgwa wa nyakišišo ya khwanthithethifi, gomme gwa dirwa le poelomorago ya lotšistiki. Datha ya go selaganya e kgobokeditšwe go tšwa go diprotšeke tše 1 847 tša kgoboketšo ya meneelo ya lešaba go ralala le dipolatefomo tše ntši tša kgoboketšo ya meneelo ya lešaba dinageng tše 54 tša Afrika, tšeo di akaretšago nako ya 2018 go fihla ka 2020. Dikutollo di utollotše mabaka a mmalwa ao a bego a amana gabotse le katlego ya kgoboketšo ya meneelo ya lešaba. Mabaka a a be a akaretša tšhomišo ya diswantšho, dibidio, dimpshafatšo, dipotšišo tšeo di botšišwago gantši le bathekgi. Ka lehlakoreng le lengwe, ditshwayatshwayo, nako le tšhelete ye e nepišitšwego di hweditšwe di na le kamano ye mpe le katlego ya kgoboketšo ya meneelo ya lešaba. Go feta moo, maitemogelo a mogwebi a hweditšwe a na le khuetšo ye botse go katlego ya kgoboketšo ya meneelo ya lešaba. Go ba gona ga diriwate go hweditšwe gape go na le khuetšo ye botse katlegong ya kgoboketšo ya meneelo ya lešaba, gammogo le go ba gona ga neteweke ya leago. Seabe se segolo sa nyakišišo ye ke tshekatsheko ya yona ya diphihlelelo ya dilo tšeo di laolago katlego ya go thuša ka ditšhelete tša lešaba ka Afrika ka ge dinyakišišo tše mmalwa tše di bapetšwago ka kontinenteng ya Afrika di felela go nyakišišo ya dikgopolo. Mekgwa ye mentši le diteori di šomišitšwe mo nyakišišong ye, tša tšweletša ditemogo tša bohlokwa go bagwebi, batšweletši ba melawana le dipolatefomo tša kgoboketšo ya meneelo ya lešaba. Ditemogo tše di ka thuša go kaonafatša tekanyo ya katlego ya masolo a kgoboketšo ya meneelo ya lešaba ka Afrika. Dikutollo tša nyakišišo ye di sepetšana gape le leswao, kemedi, sebopego sa mmaraka wa panka le diteori tša bonamodi tša ditšhelete. Dikutollo tše di godiša dinyakišišo tša thuto eupša gape di na le ditlamorago tše di šomago go bagwebi, babeeletši, batšweletši ba melawana le dipolatefomo tša kgoboketšo ya meneelo ya lešaba tšeo di šomago ka Afrika. Nyakisiso e fa keletšo ya pholisi go mebušo ya Afrika gore e tšwetša pele melawana yeo e bego e tla kaonafatša mananeokgoparara a theknolotši ao a nyakegago dipolatefomong tše di šireletšegilego tša kgoboketšo ya meneelo ya lešaba

Itlhayelo lokusekelwa ngemalimnikelo kubosorhwebo abancani nabakhasako (SMEs) kanye nabosorhwebo kuletha isitjhijilo. Iinhlangano zeemali ezijayelekileko zibona ubungozi obumbi bokutlhoga isekelo leemali njengento ebangelwa kutlhogeka kwesibambiso sokuthola imali. Yeke-ke, kuyavunyelwana ngokunabileko ukobana ama-SMEs aqakathekile ekwakheni amathuba womsebenzi, ekuhlumiseni umnotho kanye nakututhuko. Ukurarulula lomraro, isekelo lemalimnikelo selibonakala njengendlela enye etjhiphileko yokuthola iimali zokusekela amaqhinga amatjha. Ngamajima wemalimnikelo, abantu bangafunela amaphrojekthi wabo isekelo leemali. Yeke-ke, ipumelelo yamaphrojekthi aragwa ngemalimnikelo ayinasiqinisekiso njengombana zinengi izinto ezimthintela wepumelelo. Amarhubhululo amanengi wezokusekelwa ngemalimnikelo kokuthoma aqale khulu amazwe athuthukileko, kanti lincani irhubhululo elenziweko ngaphasi kobujamo be-Afrika. Ukungezelela, leziimfundo zamarhubhululo azikavami ukusebenzisa idatha engaphandle kwemikhawulo yelizwe kanti ibonakala iyincani ukobana ingasetjenziswa ukutsenga amaphrojekthi ukusukela kuhlelo linye lamapulatifomu wesekelo lemalimnikelo begodu nangendlela amazwe azwisisa ngayo imiqondo ethileko yamagama, aqale khulu ekwakhiweni kwethiyori. Yeke-ke, iminqopho yalesifundo serhubhululo beyilandela ngalendlela: Kokuthoma, ukuhlola ngokuphathekako imithelela yepumelelo yesekelo lemalimnikelo kuma-SMEs kanye nakubosorhwebo e-Afrika.; kwesibili, ukuphenya umthintela welwazi labosorhwebo kupumelelo yesekelo lemalimnikelo; kwesithathu, ukutsenga/ukuhlaziya umthelela womphumela obonakalako nongabonakaliko kupumelelo yesekelo lemalimnikelo; kanti, kwesine, ukuhlola indima yamathintano wabantu kupumelelo yesekelo lemalimnikelo. Ukuvala isikhala serhubhululo, indlela yerhubhululo lamanani isetjenzisiwe, begodu kwenziwa irigretjhini yelojistiki (logistic regression). Idatha yeenquntu zekhroso yabuthelelwa kumaphrojekthi ayi-1847 wesekelo lemalimnikelo kumapulatifomu amanengi wesekelo lemalimnikelo emazweni we-Afrika ama-54, ukusukela ngomnyaka ka-2018 kufikela ku-2020. Ilwazi elitholakeleko likhomba bona imithelela embalwa leyo beyikhambisana nepumelelo yesekelo lemalimnikelo. Lemithintela ifaka ukusetjenziswa kweenthombe, amavidiyo, ukwaziswa okutjha, imibuzo evamise ukubuzwa kanye nabasekeli. Ngakelinye ihlangothi, iinkulumo, isikhathi kanye nenani eliqaliweko kutholakele kobana akukhambisani kuhle nepumelelo yesekelo lemalimnikelo. Ngaphezu kwalokho, ilwazi likasorhwebo latholakala bona linomthelela omuhle kupumelelo yesekelo lemalimnikelo. Ukubakhona kwabonongorwana nakho kwatholakala bona kunomthelela omuhle kupumelelo yesekelo lemalimnikelo, kanye nokubakhona kwethintano lomphakathi. Igalelo elikhulu lalesisifundo serhubhululo kulihlahlubo laso elinobufakazi obuphathekako bemithintela yepumelelo yesekelo lemalimnikelo e-Afrika, njengombana iimfundo ezimbalwa ezimadanisekako zamarhubhululo enarhakazini ye-Afrika ziphelela kurhubhululo lezomqondo wegama. Iindlela kanye namathiyori amanengi kusetjenzisiwe erhubhululweni, kwaletha ilwazi eliqakathekileko elifanele abosorhwebo, abatlami bemthethomgomo kanye namapulatifomu wesekelo lemalimnikelo. Lelilwazi lingasiza ukuthuthukisa izinga lepumelelo yamajima wesekelo lemalimnikelo e-Afrika. Ilwazi elitholakeleko lerhubhululo nalo likhambisana ngendlela efanako nesiginali, ne-ejensi, nesakhiwo semakethe yamabhanga kanye namathiyori wamabhizinisi weemali asesigabeni esiphakathi. Lelilwazi elitholakeleko liqinisa irhubhululo lezefundo begodu linemithintela ephathekako kubosorhwebo, kubatjalimali, kubatlami bemithethomgomo kanye nakumapulatifomu wesekelo lemalimnikelo asebenza e-Afrika. Irhubhululo linikela isiyeleliso somthethomgomo kuborhulumende be-Afrika ukobana balandele imithethomgomo leyo ezokuthuthukisa umthangalasisekelo wethekinoloji odingakala ukusiza ukutholakala kwamapulatifomu wesekelo lemalimnikelo