Measuring the willingness to use shariah compliant crowdfunding model by the entrepreneurs in Malaysia through logistic regression

Abstract

Crowdfunding is a method of raising fund among entrepreneurs. A recent study has shown that crowdfunding has exceeded venture capital in providing funding to entrepreneurs. This paper discussed the possibility of the entrepreneurs adopting shariah-crowdfunding platforms as their personal preference of gaining businesses capital on top of accessing the entrepreneurs’ level of understanding of the shariah crowdfunding concept. The study has collected primary source of data from 411 questionnaire distribution and detailed analysis was done by performing logistic regression modelling. Findings have managed to reveal and identify the overall awareness, understanding and entrepreneurs' level of acceptance of the shariah crowdfunding concept. On top of that, the regression analysis managed to point out the main factor in creating demand for Islamic crowdfunding platforms, especially in Malaysia, by enhancing the platforms' efficiency to ease the experience of using the platform for the benefits of the entrepreneurs. As the data collection is conducted in the Klang Valley area, the research does not cover all province in Malaysia. The study also provides insight for the supply side (campaign creators) understanding and willingness on the adaptability of crowdfunding as alternatives businesses financing option. It also adds to the literature on the probability intention of the entrepreneurs to use crowdfunding specifically in Malaysia and helps to gives a general view on the Malaysian entrepreneurs’ perception towards crowdfunding activities.