What factor is essential in successful crowdfunding: a MULTIMOORA-EDAS approach to explore factors that influence the success of crowdfunding campaigns

Abstract

PurposeDue to the high rate of failure of most crowdfunding projects, knowing the most essential factor to obtain funding success on the crowdfunding platform is of great importance for fund seekers on the crowdfunding platform. The purpose of this study is to explore crowdfunding success factors to know the most essential success factor for stakeholders of the crowdfunding platform to make the best decision when seeking funds on the crowdfunding platform. This study identified and ranked crowdfunding success factors for stakeholders of crowdfunding platforms. Sixteen factors were identified and categorized under five broad headings. These were; project ideas, target capital, track records, geographical proximity and equity.Design/methodology/approachTo rank the identified crowdfunding success factors and subfactors, this study used the Multi-Objective Optimization Based on Ratio Analysis (MULTIMOORA) integrated with the Evaluation based on Distance from Average Solutions (EDAS).FindingsTarget capital ranked first among the five categories—while duration involved in raising funds ranked first among the sixteen subfactors. An approach for analyzing how each success factor enhances a crowdfunding campaign was developed in this study. This study provides valuable insight to fund seekers on the crowdfunding platform on how funding success can be achieved by knowing which factor to consider essential when seeking funds on the crowdfunding platform.Originality/valueThis is the first study to explore crowdfunding success factors using the MULTIMOORA-EDAS method. The use of this method will help fund seekers on the crowdfunding platform to know which crowdfunding success factor is essential, thereby aiding fund seekers to make the best decision when seeking funds on the crowdfunding platform. Also, this study is particularly helpful for business owners, platform operators and policymakers when deciding how to allocate resources, plan campaigns and implement regulations.

Measuring crowdfunding success for small and medium‐sized enterprises sustainable development: Insight from the social networking theory

“…Bulgaria 1 (Statista, 2022). Crowdfunding is new and poorly understood in Ghana, and individuals do not trust it as an investment choice to donate to any of the projects listed on numerous websites (Djimesah et al, 2023;Mugabi, 2014). Venture involvement typically begins at the local level, allowing individuals to invest in local projects (Mugabi, 2014).…”