The Determinants of Reward-Based Crowdfunding Success in Africa
This study focused on investigating the factors that drive reward-based crowdfunding in Africa, particularly considering the increasing limitations that entrepreneurs face in accessing traditional financial resources globally, by analysing 215 crowdfunding projects from prominent platforms like Kick...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-05-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/13/5/94 |
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| author | Lenny Phulong Mamaro Athenia Bongani Sibindi Ntwanano Jethro Godi |
| author_facet | Lenny Phulong Mamaro Athenia Bongani Sibindi Ntwanano Jethro Godi |
| author_sort | Lenny Phulong Mamaro |
| collection | DOAJ |
| description | This study focused on investigating the factors that drive reward-based crowdfunding in Africa, particularly considering the increasing limitations that entrepreneurs face in accessing traditional financial resources globally, by analysing 215 crowdfunding projects from prominent platforms like Kickstarter, IndieGoGo, and Fundraised. The research aimed to identify the key drivers of crowdfunding success. The results from an econometric logistic regression analysis revealed that while images, longer campaign durations, and videos positively influenced crowdfunding, they did not significantly contribute to achieving success. In contrast, the number of backers showed a positive and significant impact on outcomes, whereas the targeted funding amount negatively influenced the success. Notably, the presence of spelling errors was found to have a positive, though statistically insignificant, relationship with crowdfunding success. These findings enhance the existing literature on crowdfunding and offer valuable insights into concepts such as information asymmetry and signalling theory within the context of reward-based crowdfunding. |
| format | Article |
| id | doaj-art-283cda025e6e42db8d0e01f869db345e |
| institution | OA Journals |
| issn | 2227-9091 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj-art-283cda025e6e42db8d0e01f869db345e2025-08-20T02:33:58ZengMDPI AGRisks2227-90912025-05-011359410.3390/risks13050094The Determinants of Reward-Based Crowdfunding Success in AfricaLenny Phulong Mamaro0Athenia Bongani Sibindi1Ntwanano Jethro Godi2Department of Finance Risk Management and Banking, University of South Africa (UNISA), P.O. Box 392, Pretoria 0003, South AfricaDepartment of Finance Risk Management and Banking, University of South Africa (UNISA), P.O. Box 392, Pretoria 0003, South AfricaDepartment of Finance Risk Management and Banking, University of South Africa (UNISA), P.O. Box 392, Pretoria 0003, South AfricaThis study focused on investigating the factors that drive reward-based crowdfunding in Africa, particularly considering the increasing limitations that entrepreneurs face in accessing traditional financial resources globally, by analysing 215 crowdfunding projects from prominent platforms like Kickstarter, IndieGoGo, and Fundraised. The research aimed to identify the key drivers of crowdfunding success. The results from an econometric logistic regression analysis revealed that while images, longer campaign durations, and videos positively influenced crowdfunding, they did not significantly contribute to achieving success. In contrast, the number of backers showed a positive and significant impact on outcomes, whereas the targeted funding amount negatively influenced the success. Notably, the presence of spelling errors was found to have a positive, though statistically insignificant, relationship with crowdfunding success. These findings enhance the existing literature on crowdfunding and offer valuable insights into concepts such as information asymmetry and signalling theory within the context of reward-based crowdfunding.https://www.mdpi.com/2227-9091/13/5/94incentives rewardsentrepreneurscrowdfunding success |
| spellingShingle | Lenny Phulong Mamaro Athenia Bongani Sibindi Ntwanano Jethro Godi The Determinants of Reward-Based Crowdfunding Success in Africa Risks incentives rewards entrepreneurs crowdfunding success |
| title | The Determinants of Reward-Based Crowdfunding Success in Africa |
| title_full | The Determinants of Reward-Based Crowdfunding Success in Africa |
| title_fullStr | The Determinants of Reward-Based Crowdfunding Success in Africa |
| title_full_unstemmed | The Determinants of Reward-Based Crowdfunding Success in Africa |
| title_short | The Determinants of Reward-Based Crowdfunding Success in Africa |
| title_sort | determinants of reward based crowdfunding success in africa |
| topic | incentives rewards entrepreneurs crowdfunding success |
| url | https://www.mdpi.com/2227-9091/13/5/94 |
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