A Synthesis of Crowdfunding Concepts in the Ghanaian Context: Crowdfunding Information Challenges in Ghana

Kuma, Francis Kwaku; Yusoff, Mohd Fairus Mohd; Apreku-Djan, Paul Kwasi

doi:10.1007/s13132-022-01062-2

Cited by 2 publications

(3 citation statements)

References 101 publications

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“…According to their findings, entrepreneurs who have access to other forms of equity are less likely to use equity crowdfunding, while entrepreneurs who use equity crowdfunding are more likely to fail. Similarly, the findings of Kuma et al (2022) suggest that information asymmetric plague the smooth operations of the crowdfunding concept in Ghana.…”

Section: Disscusionmentioning

confidence: 87%

“…However, when respondents were asked if equity crowdfunding can bridge the funding gap in entrepreneurship in Ghana, majority of respondents answered in affirmation. Kuma et al (2022) suggest that though crowdfunding is a fairly new concept in Ghana, it is similar to Susu, which is a traditional microfinancing concept and, therefore, has a high acceptability rate. According to Berndt and Mbassana's (2016) study, their participants expressed an interest in using crowdfunding, though clarification of the entrepreneurs' and investors' expectations would be required prior to its use.…”

Section: Disscusionmentioning

confidence: 99%

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Equity Crowdfunding: An Alternative Source of Financing Entrepreneurship in the Greater Accra Region of Ghana

Yensu,

Asumadu,

Atuilik

et al. 2024

ESJ

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Entrepreneurship is globally seen as a tool for job creation, contributing to the stability and economic development of nations. This is why the governments of many nations, including Ghana, put up initiatives to promote entrepreneurial activities. This paper focuses on assessing equity crowdfunding as an alternative source of generating fund for entrepreneurial projects in Ghana. A combination of qualitative and quantitative approaches were used in conducting this study in the Tema Municipality of the Greater Accra Region. A sample size of 149 entrepreneurs in various industries, 118 investors, and 90 respondents acting as both entrepreneurs and investors were chosen through purposive sampling method. Data were collected through the use of questionnaires and analyzed using descriptive statistics, employing tables and graphs. The results of the study showed that most entrepreneurs and investors had heard of equity crowdfunding but very few understood the operations of this type of funding. Also, it became evident that the investors and entrepreneurs had inadequate knowledge and understanding about crowdfunding adoption in Ghana. The study showed that equity crowdfunding is capable of bridging the funding gap and, therefore, is a suitable alternative in generating funds for entrepreneurship in Ghana. It is recommended that equity crowdfunding should be included as a source of funding in entrepreneurship curriculum. Also, policies should be made by government to establish regulations that will protect all the parties involved in equity crowdfunding.

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Section: Disscusionmentioning

confidence: 87%

Section: Disscusionmentioning

confidence: 99%

Equity Crowdfunding: An Alternative Source of Financing Entrepreneurship in the Greater Accra Region of Ghana

Yensu,

Asumadu,

Atuilik

et al. 2024

ESJ

View full text Add to dashboard Cite

show abstract

“…Findings by (Kuma et al, 2022) suggest that though crowdfunding is a fairly new concept in Ghana; it is similar to Susu, which is a Ghanaian traditional microfinancing concept and therefore has a high acceptability rate; and the rotational savings and credit concept of Susu have similarities with peer-to-peer lenders (P2P) crowdfunding, except in the area of platforms used in accessing these funds. They add that The public is already involved in funding support for community projects in the form of donation for altruistic reasons, so acceptance of CF will be very high (Kuma et al 2022).…”

Section: West Africamentioning

confidence: 99%

The state of crowdfunding in Africa and its potential impact: a literature review

Ismaila

2023

IJRBS

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The purpose of this review is to shed light on the current state of crowdfunding and its possible effects on African communities. The goal of this article is to give a narrative overview of how crowdfunding has evolved, along with trends, challenges, and potential effects on African communities. Despite recent advancements in the usage of mobile technology on the continent, the growth of crowdfunding based on internet platforms has been quite gradual. According to research, the success of crowdsourcing initiatives in Africa depends on a hybrid strategy that involves the "offline" network of backers. The majority of research concluded that the biggest barriers to the growth of crowdfunding in Africa were a lack of knowledge and trust in public institutions, lax laws protecting the rights of backers and ensuring transparency, as well as technology (internet connection). Also mentioned was the possibility that significant cultural aspects of offline crowdfunding, if taken into consideration, would make it easier for African business owners to adopt the practice. It has lagged behind other continents in the use of crowdfunding to raise money for small businesses or individuals, which could also help with financial inclusion in Africa, either directly for individuals or by sponsoring small enterprises. It is necessary to have a regulatory framework that promotes technological advancement while also reducing crime and fraud. Additionally, establishing platforms based on continents and creating synergies with existing financial actors would raise awareness, boost confidence, and whet interest in using them.

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A Synthesis of Crowdfunding Concepts in the Ghanaian Context: Crowdfunding Information Challenges in Ghana

Cited by 2 publications

References 101 publications

Equity Crowdfunding: An Alternative Source of Financing Entrepreneurship in the Greater Accra Region of Ghana

Equity Crowdfunding: An Alternative Source of Financing Entrepreneurship in the Greater Accra Region of Ghana

The state of crowdfunding in Africa and its potential impact: a literature review

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