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The main objective of the study was to assess the situation of crowdfunding in
Tanzania as a source of fund to businesses looking at opportunities, challenges and
solutions. The specific research objectives were;to determine the opportunities
offered by crowdfunding as a source of fund to businesses in Tanzania, to find out
the challenges facing crowdfunding as a source of fund to businesses in Tanzania and
to suggest the possible solutions on improving crowdfunding as a source of fund to
businesses in Tanzania.
The study employed qualitative research design. The study used both primary and
secondary source of data. The data collection methods used by the study were
questionnaires and Interview. The study used a sample of 07 respondents to gather
the relevant information of the study. Data obtained was analyzed through content
analysis and tabulation.
Findings from the study revealed various opportunities offered by crowdfunding as a
source of fund to businesses in Tanzania. These included solving company problems
without incurring more costs, time saving, creation of more avenues for businesses to
access capital, subsidization of the costs of marketing and promotion, attraction of
many investors, increases the product and brand awareness, and control of business
decision. Furthermore, the study found various challenges facing crowdfunding as a
source of fund to businesses in Tanzania. These are such as lack of experience using
the crowdfunding platforms, Lack of opening business to public and lack of legal and
regulatory framework.
It is recommended that, there must be introduction of training on crowdfunding
matters on the advantages and opportunities offered by crowdfunding to the
entrepreneurs and businessmen in Tanzania. Furthermore, there is a need for the
government of Tanzania to introduce and enact relevant legislations which provide
for crowdfunding. Finally, it is recommended that there is also a need for the
improvement of communication technologyso as to cater for the needs of
crowdfunding since crowdfunding largelyinvolve the use of internet. |
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