Factors Influencing Crowdfunding Plausibility in Post Hyperinflationary Zimbabwe

Abstract

In many developing econonmies access to traditional entrepreneurial financing like banks and venture capitalists has remained suppressed. This has forced many entrepreneurs to resort to non traditiona lmethods of venture financing among them, financial bootstrapping and micro loans. One alternative that these ventures could employ is crowdfunding. Although crowdfunding has remained predominantly a developed world phenomenon, there has been strides in the emerging economies to employ it as an entrepreneurial financing alternative. This paper spught to investigate the factors that are driving the possibility of Zimbabwean entrepreneurs employing crowdfunding as a financing technique. Through survey data collection techniques and statistical data analysis this research mananged to highlight the factors in the crowdfunding ecosystem tht makes the Zimbabwean economy ready for crowdfunding activities. In line with existing literature five factors were uncovered as the major drivers that make crowdfunding possible in Zimbabwe and the results are used to infer to other emerging economies with similar characteristics.