Towards an indigenous crowdfunding framework: a new guide for entrepreneurship funding in developing countries

Abstract

The evolution of information and communication technology (ICT) and the internet has revolutionised the way business transactions are executed in the 21^st century. The evolution also affects how individuals and companies communicate and use the wonders of social media and its applications. Due to the advancement of ICT and the internet, a new project, business, concept, and idea funding mechanism has emerged. The new funding platform is called ‘crowdfunding’, which allows individuals, business partnerships, companies and many others to get their projects or business ideas funded by the general public (the backer) over the internet platform. This review article aims at exploring and projecting crowdfunding as an alternative fundraising mechanism for entrepreneurs in developing countries and to back indigenous black business empowerment (IBBE). It also highlights the potentiality of crowdfunding in developing countries, while formulating an indigenous crowdfunding framework (ICF) to guide entrepreneur-minded individual/s on how to effectively use the crowdfunding platform to kick start their ideas in developing countries.

Keywords: Crowdfunding, developing countries, business, project, entrepreneur