What drives the use of crowdfunding by micro-entrepreneurs in Morocco? – exploring fundraiser motives and characteristics

Abstract

Purpose The purpose of this study is to identify motivations for the uptake of crowdfunding by micro-entrepreneurs in an emerging economy and the extent to which these vary by entrepreneur characteristics, sector and crowdfunding model. Design/methodology/approach The authors conduct qualitative analyses of data collected in interviews with 57 micro-entrepreneurs in Morocco, all of whom used crowdfunding in fundraising. Findings The authors identify six key motives for crowdfunding adoption by micro-entrepreneurs including financing needs, legitimacy seeking, sense of achievement, network-building, entrepreneurial and marketing competence enhancements. They also find evidence for moderation effects of fundraiser characteristics on likelihood of adoption, including gender, age, education, training experience and sectoral affiliation. Furthermore, the authors show that the relative importance of different motives varies by the type of crowdfunding model used. Originality/value The original aspects of the study include the examination of adoption motives in an emerging market context and the distinguishing between entrepreneurs’ adoption motives based on different gender, age, education, training experience, sectoral affiliation and crowdfunding model used. Moreover, the authors show that enhancement of competencies is a more dominant motive in the emerging market context than mentioned in earlier studies in developed contexts.