Ramification of Crowdfunding on Entrepreneur Self-efficacy
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
The innovative funding sources become more and more important in the SME sector all over the world especially after the 2007-2008 world financial crisis. In order to develop a new business idea, start-ups and SMEs need a sufficient amount of capital. However, after the financial crisis in 2008, SME sector faced the challenges of attracting new capital. Due to that, an innovative method of fundraising for SME is introduced as crowdfunding. Crowdfunding indicates financing a project or an idea via the internet owing the help from the many investors or donors of a society. Though computer based supportive work studies have initiated to explore how this new type of system influences entrepreneurial work, less is known about the influence of Crowdfunding on Entrepreneur Self-efficacy (ESE) to succeed at a business task. Hence, to minimize the research gap and to achieve the objective of the study, we conducted a quantitative research of 190 entrepreneurs using crowdfunding based on Social Cognitive theory. Based on gender, male entrepreneur constituted 57% while female entrepreneur represented 43% of the sample population. The data were analyzed using Structural Equation Modeling (SEM) in IBM-SPSS-Amos 25.0 and the stated hypotheses were tested. The study found the following direct effects are positive and significant namely, Crowdfunding on Entrepreneur’s Self-efficacy (?=0.924, P=.001). Overall, the result has landed support for crowdfunding can influence self-efficacy of entrepreneur. In order to prove the need of crowdfunding, we have explained and statistically proved that how crowdfunding can provide an additional channel through which firms can obtain finance and take an advantage of fully exploiting the potential of the internet as well as to create self-efficacy of entrepreneurs.
Authors and Affiliations
Abu Shams Mohammad Mahmudul Hoque, Zainudin Awang, Habsah Muda Fauzilah Salleh, Norfadzilah Rashid, Asyraf Afthanorhan
Keywords
Related Articles
- EP ID EP583002
- DOI 10.6007/IJARBSS/v8-i12/5081
- Views 92
- Downloads 0
A Contemporary Theory of Social Entrepreneurship from Tawhidic Paradigm: A Conceptual Study
This study postulates a contemporary social entrepreneurship theory from Tawhidic paradigm for a comprehensive theory to describe the nature of the social entrepreneurship, the scope and boundaries of assessment on socia...
Inflation Targeting and Economic Growth Nexus in Nigeria: Implications for Monetary Policy
The study examined inflation targeting –economic growth nexus in Nigeria, with the aim of imbibing the useful lessons and avoiding the pitfalls from cross-country experiences. The study employed descriptive approach to t...
The Development Model Of Football Coaches Specific Strength And Conditioning Knowledge: Application towards Youth Women’s Football Players in the Selangor State Sports School
The purpose of this study is to identify the level of knowledge among coaches of youth women’s football of the Selangor State Sports School (SSS) and the issues and challenges faced in the implementation of strength and...
Customers’ Intention towards Shariah Compliant Credit Cards: A Pilot Study
The Islamic finance industry continues to grow, and the Islamic banking and finance sector has made further progress in accomplishing a comprehensive Shariah based-contract regulatory framework. It is important to note t...
Sino-Latin America Trade potential and its Influencing Factors
We have developed a framework to measure the Sino-Latin America trade potential and its influencing factors by using gravity theory. The objective of the study includes introducing the gravity flow model to measure the b...