Tapping the Potentials of Crowdfunding as a Financing Mechanism for Entrepreneurship Ideas in Nigeria

Abstract

Crowdfunding as an emerging financing method for SMEs and creators of innovative ideas is gaining ground around the world but it is yet to be fully appreciated in the Nigerian market. Thus, the aim of this paper which is exploratory is targeted at providing an insight of its potential, opportunities, and challenges for the Nigerian entrepreneur. The methodology was a review of the extant literature and information gathered from other secondary sources on the concept to determine its practicability in Nigeria.  It is true that with several constraints and associated risks, it may not be practicable to start the implementation of all known crowdfunding models in the country, but the conclusion is that there is no better time than now for the implementation of the Donation and Pre-order models to pilot crowdfunding for entrepreneurial activities in the country.

Keywords: Crowdfunding, Fundraisers, SMEs, Startups, Creative ideas, Donor/Backers, Crowdfunding platform, etc