Crowdfunding for Youth Entrepreneurship in Tanzania
InfoStart date: 1 February, 2020 End date: 30 January, 2024 Project type: Research collaboration projects in Danida priority countries (Window 1) Project code: 18-15-TAN Countries: Tanzania Thematic areas: Economic development and value chains, Production, industry and labour market, Lead institution: Mzumbe University (MU), Tanzania Partner institutions: Copenhagen Business School (CBS), Denmark Small Industries Development Organization (SIDO), Tanzania Project coordinator: Nsubili Isaga Mwalukasa Total grant: 11,812,788 DKK
The literature highlights some of the limitations of traditional debt financing as a response to the youth entrepreneurs’ financing needs. Funding becomes a matter of friends and family, and local dealers all represent a limited and expensive means of obtaining funds for their entrepreneurial ventures. Recently, new alternative and innovative approaches to financing entrepreneurs and start-ups emerged.
The project ’crowdfunding for youth entrepreneurs in Tanzania’ (C4YET) seeks to generate an understanding of crowdfunding as an effective funding mechanism for (youth) entrepreneurs. To fill this knowledge gap and to build capacity on crowdfunding in the context of Tanzania, C4YET project employs state-of-the-art research methodologies. In the exploratory research phase, C4YET project will careful review existing literature relevant to both funder behaviors and biases and youth entrepreneurship in developing countries. In the mature phase, an extensive data collection will be carried in situ to understand local crowdfunding behaviors.
C4YET will seek to influence policy and strategies concerning crowd funding, including models applicable in developing countries. Specifically, in Tanzania, it will seek to recommend policy on crowd funding to stakeholders such as the Ministry of youth, Ministry of Industry, Trade and Investment and financial policy regulators such as the Capital Markets and Securities Authority (CMSA) and Bank of Tanzania.
First year report
Data and prototype to be used in the lab experiment has been collected.
Lab experiment has been designed in CBS, the lab experiment will be conducted in Spain in the first half of 2020.