Investigating the Factors that Undermine Innovative Financing towards Sustainability of Entrepreneurship in Nigeria

Abstract

Purpose: The present study aims at exploring the factors that hinder employing innovative financing that can ensure the sustainability of entrepreneurship in Nigeria. The study also evaluates some aspects of entrepreneurial activity in the country. Approach/Methodology/Design: Quantitative data were analyzed using descriptive statistics. The key variables under study were two possible factors that can facilitate the use of crowdfunding in southeast Nigeria. The selected themes explored were ‘weak regulatory environment’, ‘awareness of CF’, ‘attitudes and perception of people towards CF’, ‘social media options’, ‘level of education and Occupation’ of the population under investigation. Findings: The general finding from this research is that no existing law has been developed to guard against the implementation of CF. Data seems to suggest that regulation is an important aspect of CF; therefore, the need for a legal framework is pertinent. The rapid expansion of crowd-based finance especially in developed countries should motivate Nigerians to engage in CF to finance entrepreneurs. Practical Implications: There are so many constraints against entrepreneurship attaining its full capacity in Nigeria. An innovative means of raising funds through the internet in order to bring new ideas to life and promote existing ones is needed. The outcome of this research can serve as a template to be adopted by other Sub Saharan African countries that face similar situations like Nigeria. Originality/value: To the best of our knowledge, not much has been done to empirically investigate an alternative innovating funding option known as crowdfunding. This research fills this gap.