Islamic Crowdfunding Adoption and Small-Scale Enterprises Incubation in Niger State, Nigeria

This study investigated the effect of various Islamic crowdfunding adoption models - Reward-Based Crowdfunding (Qard Hassan), Donation/Charity-Based Crowdfunding (Waqf), Lending-Based Crowdfunding (peer-to-peer lending), and Equity-Based Crowdfunding on the incubation of small-scale enterprises (SSEs) in Niger State, Nigeria. Utilizing a quantitative and cross-sectional research designs, data was collected from a population of 304 SSEs who are registered members of Niger Chamber of Commerce, Industry, Mines, and Agriculture (NCCIMA). The sample size of the study is 172 SSEs. 152 questionnaires are retrieved from the field for analysis. The study used multiple linear regression analysis to test the formulated hypotheses. The results reveal a significant negative relationship between Reward-Based Crowdfunding Adoption and SSEs incubation, indicating potential challenges associated with this model. Conversely, Lending-Based and Equity-Based Crowdfunding showed positive associations with SSEs incubation, suggesting these models effectively support enterprise growth. Notably, Donation/Charity-Based Crowdfunding did not exhibit a significant impact. The findings underscore the necessity for stakeholders, including policymakers, financial institutions, and incubators, to foster an environment conducive to effective crowdfunding strategies, thereby maximizing the potential of crowdfunding as a sustainable tool for business development in the state.