EXPLORING THE CURRENT CHALLENGES OF CROWD-FUNDING IN BANGLADESH: INSIGHTS FROM THE PERSPECTIVE OF THE ENTREPRENEURS

• Published in: International journal of information, business and management business and management, 2025-02, Vol.17 (1), p.33-50
• Main Authors: Hossain, Biplob, Kumar, Sagar, Nisha, Nusrat Jahan, Mia, Md Jewel, Hossain, Gazi Md Shakhawat
• Format: Article
• Language: English
• Subjects: Crowdfunding; Economic growth; Entrepreneurial finance; Entrepreneurs; Entrepreneurship; Fraud; Funding; Industrialized nations; Internet; Investigations; Qualitative analysis; Startups
• ISSN: 2076-9202; 2218-046X

Crowd-funding has emerged as a viable alternative financing option for entrepreneurs worldwide, representing an unconventional method of raising capital via the internet from diverse groups of people or investors. In recent years, the adoption of crowdfunding by entrepreneurs has surged significantly, not only in developed countries but also in developing regions. Despite this trend, the level of crowdfunding acceptance among Bangladeshi entrepreneurs' remains relatively low compared to other South Asian nations such as India and Pakistan. Therefore, this study seeks to investigate the contemporary challenges faced by entrepreneurs in Bangladesh regarding the adoption of crowdfunding. A qualitative exploratory approach was employed to meet the objective. Data was gathered through semi-structured interviews with 16 entrepreneurs, and then subsequently analyzed and presented thematically. The findings of the study identify five key challenges or barriers that hinder entrepreneurs from adopting crowdfunding including, deficient awareness and comprehension, regulatory and legal issue, risk of security, technological barriers, and functional barriers. Furthermore, this study offers a groundbreaking thematic investigation into these challenges, representing a significant new contribution to the field of crowdfunding. Policymakers can utilize the identified barriers to develop targeted policies that support the crowdfunding sector. Additionally, crowdfunding platforms can apply the study's findings to improve their services, thereby providing greater support to entrepreneurs.