Crowdfunding: The beliefs of Rwandan entrepreneurs
2016 (English)Report (Other academic)
Crowdfunding, through the use of Internet platforms, is a relatively recent development that has attracted both interest among entrepreneurs and investors. Recent figures suggest approximately $34.4 billion was raised in 2015, making crowdfunding attractive to entrepreneurs. Crowdfunding in Africa has not received the same level of attention, and thus the purpose of the research was to investigate the beliefs (awareness and knowledge) of Rwandan entrepreneurs towards crowdfunding. This study is important due to the lack of academic research into this phenomenon in Africa and in Rwanda. Understanding the beliefs (awareness and knowledge) of Rwandan entrepreneurs can indicate the potential for crowdfunding for entrepreneurs and their intention to use it as a future financing strategy. Due to the limited research conducted into crowdfunding, this study was exploratory in nature with the use of qualitative methods in order to attain the purpose of the study. Use was made of convenience sampling and in this pilot study, findings from personal interviews with 8 entrepreneurs are reported on. Financial constraints were identified by most of the entrepreneurs as impacting the development of their ventures. The findings show limited knowledge of crowdfunding as a phenomenon and the specific aspects of how it operates. Despite this lack of knowledge, the participants reflected an interest in using crowdfunding, though clarification of the expectations of the entrepreneurs and the investors would be necessary prior to its use. The use of crowdfunding can be considered by entrepreneurs but care would be needed to ensure successful implementation. The study concludes by suggesting implications for entrepreneurs, crowdfunding platforms as well as crowdinvestors who would invest in the various ventures.
Place, publisher, year, edition, pages
2016. ,  p.
East Africa Research Papers in Business, Entrepreneurship and Management, 2016:05
crowdfunding; Rwanda; beliefs; awareness; knowledge
IdentifiersURN: urn:nbn:se:hj:diva-32020OAI: oai:DiVA.org:hj-32020DiVA: diva2:1038706