TITLE:
Crowdfunding Adoption in Benin: Influencing Factors and Recommendations towards an Adapted Model
AUTHORS:
Oloutchègoun Josias Lawrence Adjakou
KEYWORDS:
Crowdfunding, Entrepreneurship, Funding, Equity, Debt, FinTech, Remittance Transfer, Africa, Economic Development, Benin
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.1,
January
20,
2021
ABSTRACT: To face
the problem of lack of funds, many developed countries have adopted the crowdfunding
system. Despite the fact it has been established that the lack of proper
funding institutions is a barrier to African countries’ economic take-off, nothing sustainable has so far been done to
tackle the issue. This paper aims to investigate factors influencing
crowdfunding establishment as a substitute to formal financial organism in
Benin republic, and give recommendations toward an adapted model to the
country. To
thoroughly conduct this study, both qualitative and quantitative methods are
used. In Benin, some scholars in the domain of Finance and some people that
have a good view of the current state of Benin economy were interviewed to know
what they think about crowdfunding and the kind of models of crowdfunding they
think may be adopted by Beninese. This helped to draw a final framework of the
study, a questionnaire that served to collect first-hand data that were analyzed with SPSS (Statistical
Package for Social Science) Statistics 26 through various tests. The study has
revealed significantly positive correlation between each independent variable and the dependent
variable which is the crowdfunding
implementation. It also came out that to implement a sound and sustainable
crowdfunding system particular care should be on a well-built regulatory
framework, a well-managed technology transfer and a well-structured
organizational environment. Notwithstanding the importance of all the
variables, we came to notice that for people to accept and adopt crowdfunding
as the study would like, some variables like “Payment System”; “Financial
Consumer Protection”; “Security Trust”; “Cyber Security”; “Creditworthiness”;
“Licensing”; “Complexity”; “Accessibility”; “Availability”; “Availability”;
“Regulatory Framework” are of primordial importance, then follow the other
variables. Suitable recommendations were given to a more customized and
sustainable crowdfunding system.