International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 8, Issue 6 (2021)

The determinants of the frequency of crowd funding activity in Africa


Isaac Okyere Paintsil, Zhao Xicang, Oliver Joseph Abban

Crowd funding has become an efficient means for entrepreneurs to secure early-stage funding for their businesses and also offer other advantages to entrepreneurs such as playing the role of a marketing tool and fostering informed business decisions. However, crowd funding penetration in Africa is still very low and only few countries are taking full advantage of crowd funding. In this study we investigate the determinants of the frequency of crowd funding activity in Africa. We employed regularized regression for the analysis to overcome multicollinearity. In order to retrieve point estimates from the regularized coefficients to enable us to test the various hypothesis we adopted the induced smoothed lasso technique in the study. We find that economic variables such as GDP, and total investment have significant influence on the occurrence of crowd funding in Africa. Also, population size, wealth, institutional strength, technological advancement, labour force, and the education level have significant impact on the frequency of crowd funding. Largely, the findings show that the occurrence of crowdfund is not accidental but contingent of various significant factors.
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How to cite this article:
Isaac Okyere Paintsil, Zhao Xicang, Oliver Joseph Abban. The determinants of the frequency of crowd funding activity in Africa. International Journal of Multidisciplinary Research and Development, Volume 8, Issue 6, 2021, Pages 35-45
International Journal of Multidisciplinary Research and Development International Journal of Multidisciplinary Research and Development