Awareness and Attitude Towards Crowdfunding in Nigeria

Abstract

Crowdfunding is a new funding innovation available to entrepreneurs’ and creators of innovative ideas to raise money to fund projects for a predetermined reward. The new funding innovation is yet to penetrate into the fabrics of entrepreneurial finance in Nigeria but with considerable acceptance in the USA, France, Netherlands, Britain, etc. Presently, crowdfunding campaigns for entrepreneurial activities in Nigeria are at its lowest ebb, hence this study is conceived to scale the level of awareness and the peoples’ attitude regarding the concept. The study is exploratory, thus the method adopted is qualitative but with a survey instrument designed for the purpose. The findings of this study suggest crowdfunding awareness is very low at only 24% of respondents and most of the participants cannot identify or name crowdfunding platforms operational in Nigeria. Most crowdfunding donors donated for a social cause, especially to help the sick in the country, if awareness is built, the same fit is replicable for entrepreneurial activities. The study reveals a significant gap between crowdfunding awareness and actual participation. With only 2.2% of the total respondents had ever participated in crowdfunding as a backer and none ever participating as a fundraiser. The conclusion is that crowdfunding for entrepreneurial activities is a possibility in Nigeria should the people become more positive regarding the concept and a change of attitude towards the funding innovation; this, of course, regulatory and other stakeholders do have complimentary roles to play.

Keywords: Crowdfunding, Backer, Awareness, Attitude, SMEs,