Analysis of Housing Development Financing through Crowdfunding in Abuja, Nigeria
DOI:
https://doi.org/10.5281/zenodo.16925446Keywords:
Crowdfunding, Developers, Housing, Finance, BarriersAbstract
This study examines the feasibility of crowdfunding as an alternative funding method for housing development projects in Abuja, Nigeria, particularly among micro, small, and medium enterprises (MSMEs). The research focuses on identifying the barriers to the adoption of crowdfunding in financing these projects. A quantitative research design was adopted, utilizing an online survey technique. The study utilized primary data gathered through structured questionnaires distributed to members of Real Estate Developers Association of Nigeria (REDAN) in Abuja Branch, featuring a five-point Likert scale, distributed to a sample of 352 respondents selected via simple random sampling from a population of 2,500 registered members of REDAN in Abuja. The data was analyzed using SPSS version 24, where descriptive statistics and a one-way ANOVA test were conducted to assess the significance of various barriers to crowdfunding adoption based on respondent perceptions. Out of the 352 questionnaires sent, 330 responses were received and analyzed, the results revealed that regulatory issues (mean score: 4.87) and insufficient public information about crowdfunding mechanisms (mean score: 4.84) are the most significant barriers hindering its adoption. A one-way ANOVA test indicated significant variations in perceptions among respondents regarding these barriers. The findings highlight the necessity for tailored regulatory frameworks and increased public awareness initiatives to foster trust in crowdfunding as a viable financing option for housing development. It is recommended that policymakers create clear and robust regulations to alleviate concerns about crowdfunding and that educational campaigns be launched to help both investors and developers better understand crowdfunding, thereby encouraging adoption and greater participation.
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