Crowdfunding Adoption By Entrepreneurs In Jasikan District, Ghana: A Study Of Management Committee Members Of Co-Operatives

Abstract

To address the financial challenges facing small and medium-sized enterprises (SMEs), new funding options like crowdfunding have emerged. Understanding how entrepreneurs perceive and are prepared to use crowdfunding is essential. Thus, this study aimed to explore entrepreneurs' intentions and the factors influencing their inclination to adopt crowdfunding in the Jasikan District of Ghana, drawing on the pecking order theory and the theory of planned behavior. Employing a quantitative approach and cross-sectional survey design, the study surveyed a random sample of 196 entrepreneurs, achieving a 92 percent response rate. The target group comprised management committee members of cooperatives in the district. Analyzing the data involved both descriptive statistics using SPSS version 25 and structural equation modeling to assess the objectives. The findings revealed a low level of crowdfunding adoption among entrepreneurs, with a generally modest intention to adopt crowdfunding. Attitude towards crowdfunding and subjective norms significantly predicted a marginal increase in intention to adopt crowdfunding, whereas perceived behavioral control did not exert a statistically significant positive influence. A primary obstacle to crowdfunding adoption was identified as the lack of information and education. Despite crowdfunding not being entirely novel, its application for business funding, particularly leveraging the internet, presents a relatively new concept necessitating stakeholder education through research and pilot initiatives. Entrepreneurs are encouraged to foster platforms within their cooperatives for discussions and education on innovative approaches beneficial to business growth.