Determinants of Islamic Crowdfunding Adoption in Nigeria: Exploring Factors Influencing Acceptance and Usage

Abstract

The study attempts to examine the major factors that affect investors’ intention to use Islamic crowdfunding models in Nigeria. The study is premised on the quantitative method to draw the statistical inference on crowdfunding for MSMEs. The population of the study is Two Thousand Three Hundred and Forty-One (2341), members of the Niger Chambers of Commerce, Industry, Mines, and Agriculture (NCCIMA). 289 questionnaires were retrieved from respondents representing 85% of the 342-sample size of the study. The study uses multiple regression on study variables - Perceived Usefulness, Perceived Ease of Use, Perceived Risk, and Subjective Norm. The findings revealed that perceived usefulness, perceived ease of use, and the subjective norm have a significant effect on investors’ Intention to Use Islamic Crowdfunding Model in Nigeria; while perceived risk has no significant effect on investors’ Intention to Use Islamic Crowdfunding Model in Nigeria. The study therefore recommends that investors should create awareness and invest in incubating new start-ups using the Islamic Crowdfunding models, also government should facilitate the establishment of appropriate platforms and regulations to ease participation in the Islamic Crowdfunding model in Nigeria.