Determinants of Crowdfunding Success in Africa: An Exploratory Perspective on Incentive Rewards and Beyond

This study aims to determine the role of reward incentives in crowdfunding success in Africa. Reward incentives seem to play an essential role in the success of a crowdfunding project. Therefore, understanding how distinct types of incentive rewards influence the backer’s engagement and viability of crowdfunding campaigns is essential. Drawing from secondary cross-section data from Kickstarter and Indiegogo, this research uses the probit regression method to analyse and test the hypotheses. The findings revealed that flexible funding negatively influences a crowdfunding campaign, diminishing the probability of success. In contrast, a more significant number of backers positively affects a crowdfunding campaign, boosting its chances of success. Rewards promised to potential backers increase the probability of success. These findings influence how crowdfunding campaigns are launched, allowing them to build and achieve their financing targets. The findings provide knowledge that entrepreneurs could develop far more attractive, culturally appropriate reward schemes to boost their crowdfunding campaigns’ chances of success. It provides a valuable understanding regarding the potential of crowdfunding as an alternative tool for economic development in Africa among policymakers and development agencies. Lastly, it adds to the limited literature on crowdfunding in Africa, especially within the context of reward incentives, and provides a foundation for further studies in this area.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-08-27
DOI
https://doi.org/10.3390/jrfm18090478
Citations
1
Primary Topic
FinTech, Crowdfunding, Digital Finance
Type
article
Field-Weighted Citation Impact
2.28

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article

Determinants of Crowdfunding Success in Africa: An Exploratory Perspective on Incentive Rewards and Beyond

Lenny Phulong Mamaro
1 citations
Journal of risk and financial management
FinTech, Crowdfunding, Digital Finance
2.28
article

Determinants of Crowdfunding Success in Africa: An Exploratory Perspective on Incentive Rewards and Beyond

Lenny Phulong Mamaro
article en
1 citations

Abstract

This study aims to determine the role of reward incentives in crowdfunding success in Africa. Reward incentives seem to play an essential role in the success of a crowdfunding project. Therefore, understanding how distinct types of incentive rewards influence the backer’s engagement and viability of crowdfunding campaigns is essential. Drawing from secondary cross-section data from Kickstarter and Indiegogo, this research uses the probit regression method to analyse and test the hypotheses. The findings revealed that flexible funding negatively influences a crowdfunding campaign, diminishing the probability of success. In contrast, a more significant number of backers positively affects a crowdfunding campaign, boosting its chances of success. Rewards promised to potential backers increase the probability of success. These findings influence how crowdfunding campaigns are launched, allowing them to build and achieve their financing targets. The findings provide knowledge that entrepreneurs could develop far more attractive, culturally appropriate reward schemes to boost their crowdfunding campaigns’ chances of success. It provides a valuable understanding regarding the potential of crowdfunding as an alternative tool for economic development in Africa among policymakers and development agencies. Lastly, it adds to the limited literature on crowdfunding in Africa, especially within the context of reward incentives, and provides a foundation for further studies in this area.

Journal of risk and financial managementVol. 18(9)
University of South Africa (ZA)
University of South Africa
Openalex Percentile: Top 9%
FinTech, Crowdfunding, Digital Finance
2.28
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