Determinant Factors of Crowdfunding Success and Its Influence on SMEs in West African Countries

Abstract

The success rate of crowdfunding has boosted SME growth in developed countries, while the developing nations have not taken advantage of it. This study formulated five hypotheses from some determinants of crowdfunding success, and the outcome demonstrated that all the constructs were supported. The results provided R2 values of the constructs with repercussions on the research proposed model signifying 84.1% variance of crowdfunding success rate for SMEs in the West Africa Region. Using the Important-Performance Matrix Analysis to examine further revealed crowdfunding platform availability had the highest total effect value of 0.890. However, SMEs’ initial capital requirement and duration involved in raising the required funds also affect crowdfunding success rate in terms of performance with an index value of 72.692.