MBA Theses and Dissertations (2025)

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Browsing MBA Theses and Dissertations (2025) by Author "Murage, D."

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    Determinants of crowdfunding adoption among Small and Medium-sized Enterprises in Nairobi City: the moderating role of firm size
    (Strathmore University, 2025) Murage, D.
    While crowdfunding is a potentially viable and attractive option to get funding, its acceptance and adoption is low among Kenyan small medium enterprises. Therefore, the main objective of this research was to establish the factors that influence the adoption of crowdfunding as a viable financing option for SMEs in Nairobi City, Kenya. The specific objectives were to determine the influence of regulatory support, practical viability, knowledge and infrastructural support on the adoption of crowdfunding as a source of financing by SMEs in Nairobi City. The study also sought to examine how firm size influences the relationship between key determinants and the adoption of crowdfunding among SMEs in Nairobi City County. This study was anchored on the Unified Theory of Use and Acceptance of Technology (UTAUT) and the pecking order theory. The methodology for the proposed study was guided by the positivism philosophy. The study adopted a descriptive cross-sectional research design. The target population consist of 21,100 registered SMEs in Nairobi’s CBD Stratified random sampling was utilized in the selection of 392 small medium enterprises. Primary data was gathered using a structured questionnaire that was self-administered through a fill and wait method. To enhance validity, a pilot study and an expert review was carried out. For this study, the Cronbach’s alpha cutoff value that was adopted is <0.7. The data obtained from questionnaires was coded and entered into the SPSS. Descriptive statistics, including mean and standard deviation, was used to describe the data. Inferential analysis, using binary logistic regression, was used to examine the association between the dependent and independent variables. The findings of this study offered insights into the barriers and enablers of crowdfunding adoption, offering practical recommendations for policymakers, regulators, and SMEs to enhance crowdfunding uptake as a financing alternative, thereby fostering small medium enterprises’ growth and innovation in Nairobi City County. The study established that regulatory support has a positive and significant influence on the adoption of crowdfunding as a source of financing in SMEs in Nairobi City County. In addition, the findings showed that knowledge has a positive and significant influence on the adoption of crowdfunding as a source of financing in SMEs in Nairobi City County. Moreover, the study established that infrastructure support has a positive and significant influence on the adoption of crowdfunding as a source of financing in SMEs in Nairobi City County. However, the study revealed that practical viability does not have a significant influence on the adoption of crowdfunding as a source of financing in SMEs in Nairobi City County. Also, the study found that firm size has a positive and significant moderating effect on the relationship between regulatory support, knowledge, infrastructure support, and the adoption of crowdfunding among SMEs in Nairobi City County. Therefore, the study recommends that SME owners and managers should enhance their understanding of crowdfunding and financial literacy through educational programs, focusing on campaign creation and financial management. They should also improve digital skills and engage with crowdfunding platforms offering robust technical support. By leveraging their firm’s size and assets, SMEs can enhance their attractiveness to investors and improve crowdfunding adoption. Crowdfunding platforms should provide accessible educational resources, such as tutorials and webinars, to boost entrepreneur confidence. Policymakers should simplify the regulatory framework, enforce stronger privacy regulations, and improve oversight to build trust and encourage crowdfunding adoption.