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Crowdfunding for Start-up Financing in Kenya, South Africa & Uganda

Vries, Marcel de (2019) Crowdfunding for Start-up Financing in Kenya, South Africa & Uganda.

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Abstract:Start-up firms across the globe face difficulties in securing capital from traditional financing models. Crowdfunding is alternative financing source, which has the capacity to bypass traditional methods unleashing a democratisation of capital for economic, social and cultural entrepreneurship. Building on the existing work of crowdfunding as an alternative financing source, it asks; to what extent is crowdfunding maturing into a substantial funding source for start-ups in each of the following developing nations; Kenya, South Africa and Uganda. The theoretical review of a crowdfunding ecosystems characteristics, lead to a conceptual model of technological infrastructure, economic development and regulatory framework to formed. Data was collected through an extensive literature review, web searches and six semi-structured interviews were conducted with representative members of the Kenyan, South African and Ugandan crowdfunding ecosystems. Results were split into two sections. Firstly, describing the current overview of each nations crowdfunding ecosystem in monetary and model terms, furthermore showing the effects of the conceptual model measures on the nations crowdfunding ecosystems. Secondly, focusing on areas for which SMEs can help further develop the nations crowdfunding ecosystem while improving their crowdfunding campaigns. Interview insights emphasised the importance of continued education and the importance of networking. Literature review recommended, SMEs target diaspora members of their nation and apply the correct crowdfunding model to their current placement in the product lifecycle. The analysis of the results section showed that crowdfunding in South Africa is beginning to slowly mature into a a substantial funding source for local start-ups. Crowdfunding in Kenya is in its infancy in relation to maturing into a a substantial funding source for local start-ups. Whilst the Ugandan crowdfunding ecosystem is still very underdeveloped, exposing Uganda as being the least mature crowdfunding financing source for start-ups of the nations investigated.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Keywords:Crowdfunding, Kenya, South Africa, Uganda, Technological infrastructure, Economic development, Regulations
Link to this item:http://purl.utwente.nl/essays/78529
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