Determinants of entrepreneurs' intention to use crowdfunding in an emerging market

Abstract

Emerging countries have recently undergone a significant digital transformation, with crowdfunding platforms increasingly entering these markets. However, the adoption of crowdfunding remains limited in many of these countries. Entrepreneurs are often hesitant to use relatively new, technology-enabled fundraising systems like crowdfunding platforms due to their novelty and a general lack of familiarity with them. This calls for further research into the factors that can facilitate the adoption of crowdfunding, a challenge that is particularly relevant in the Middle East and North Africa (MENA) context. This study focuses on Egypt, specifically examining university students from three universities in Cairo who are participating in entrepreneurship programs and can be identified as aspiring or prospective entrepreneurs. This research explores the influence of three categories of factors – namely university environment factors, technological readiness factors, and personal factors - as antecedents of entrepreneurs' intention to use crowdfunding. This intention, in turn, is analyzed as a key determinant of the actual adoption of crowdfunding. The findings indicate that these factors positively influence the intention to use crowdfunding, which ultimately leads to its adoption. These results have both theoretical and practical implications. This study, theoretically, develops, and empirically, tests a new model that explains the intention to use crowdfunding and its subsequent adoption. The findings offer valuable insights for various stakeholders, including universities, policy-makers, current and prospective entrepreneurs, and entrepreneurship centers, who can leverage these insights to promote crowdfunding adoption.