Factors influencing the adoption of crowdfunding in Bangladesh: A study of start-up entrepreneurs

Abstract

Despite widespread adoption of crowdfunding for funding social donation projects, its adoption among start-up entrepreneurs is significantly low, in developing countries in particular. Research has been performed to investigate the crowdfunding adoption intention of start-up entrepreneurs in Bangladesh. This study aimed to identify the motivation behind the intentions of the entrepreneurs to adopt crowdfunding, using the Unified Theory of Acceptance and Use of Technology (UTAUT) model with extensions. Empirical data were collected from 317 respondents and analyzed using Partial Least Squares-based Structural Equation Modeling (PLS-SEM). The results indicate that performance expectancy, effort expectancy, social influence, facilitating conditions and perceived trust mpact significantly ion the entrepreneurs’ behavioral intention to adopt crowdfunding. In contrast, trialability and perceived trust were not found to be significant determinants. However, trialability has a significant positive relation with use behavior or actual use, whereas no significant relationship has been identified between behavioral intention and use behavior.

Behavior Intention to Use Online Zakat: Application of Technology Acceptance Model with Development

“…This indicates that zakat is an aspect of Islamic teaching. Zakat is carried out not only as a form of obedience to Islamic teachings but also as a form of concern for fellow humans because zakat assets will be distributed evenly.Furthermore, in the economic sector, zakat distribution can reduce poverty and increase income and welfare (Beik & Irawan, 2017;Islam & Khan, 2019). It can be said that issuing zakat is not only a form of obedience to religious orders but also a form of social care.…”

Inertia to the adoption of crowdfunding in Bangladesh: A study on start-up entrepreneurs

“…This finding is supported by previous studies. Adhikary, Kutsuna, Hoda et al (2018b) found that only 14 (5%) out of 270 studied entrepreneurs in Bangladesh have crowdfunding knowledge and Islam and Khan (2019) identified that 281 (88.6%) out of 317 start-up entrepreneurs do not have crowdfunding experience. The reason behind this is the unavailability of local crowdfunding platforms.…”

“…So, effective crowdfunding promotion campaigns and well design training program are the demand of time for the diffusion of crowdfunding in Bangladesh. If start-up entrepreneurs get the opportunity for experiment, they will do crowdfunding without delay (Islam & Khan, 2019).…”

“…Hasan et al (2017) first attempted to evaluate the psychological and behavioral readiness of possible crowdfunding participants considering a few factors such as technology awareness, perceived expectations, perceived costs, availability of resources, etc. Moreover, Islam and Khan (2019) found performance expectancy, effort expectancy, social influence, facilitation conditions and perceived trust as the motivating factors for crowdfunding by start-up entrepreneurs. But the inhibitors or barriers toward crowdfunding by the start-up entrepreneurs are remained unexplored in Bangladesh.…”

“…However, only 5% of 270 studied entrepreneurs in Bangladesh know about how to fund from crowdfunding (Adhikary, Kutsuna, Hoda et al, 2018a) and no mentionable number of entrepreneurs are found to use crowdfunding platforms. Besides, in another study, 281 (88.6%) out of 317 start-up entrepreneurs expressed that they did not have crowdfunding use experiences (Islam & Khan, 2019). But, there is scarcity of research to find out the barriers or demotivating factors that discourage the entrepreneurs in Bangladesh to accept crowdfunding.…”