Crowdfunding, Productivity and Continuity of Small Businesses

Abstract

The main objective of this study was to examine the effect of crowdfunding
practices on Productivity and Business Continuity of small businesses in
Lagos State, Nigeria. The study adopted survey research design. Data were
collected using questionnaire administered to 484 small businesses in Lagos
State across the five (5) divisional areas referred to as ibiles (Ikeja, Ikorodu,
Lagos Island, Badagary and Epe) and analysed using descriptive frequencies
and regression analysis via SMARTPLS 3.0.The results revealed that
Productivity responded significantly and positively to Donation based-DB,
Equity based-EB, Loan based-LB and Reward based-REB (β = 0.224; t-stat
= 2.974; p<0.05); (β = 0.133; t-stat = 2.072; p<0.05); (β = 0.154; t-stat =
2.689; p<0.05); (β = 0.139; t-stat = 2.142; p<0.05) respectively, while
Royalty based-RB and Invoice trading-ITC had positive but insignificant
impact. Moreover, business continuity responded significantly and positively
to DB (β = 0.142; t-stat = 2.086; p<0.05); EB (β = 0.199; t-stat = 3.292;
p<0.05); LB (β = 0.006; t-stat = 0.103; p<0.05) and RB ((β = 0.238; t-stat =
3.840; p<0.05); however, insignificantly to ITC and REB (β = 0.067; t-stat =
0.762; p>0.05); (β = 0.069; t-stat = 1.033; p>0.05. The study concluded that
DB, LB, EB REB and RB crowdfunding practices are modern source of
funding for small businesses that contributed positively and significantly to
productivity and business continuity of small businesses in Lagos state,
Nigeria