Proceedings of the 45th International Academic Conference, London

FACTORS AFFECTING THE ADOPTION OF ALTERNATIVE FINANCING METHODS FOR STARTUPS BY AFRICANS IN CHINA

SANDRA OBIORA, YONG ZENG

Abstract:

Alternative financing methods such as Crowdfunding, and Peer-to-Peer lending in the past few decades are becoming more sort after means of business start-up financing. On the other hand, traditional financing methods such as bank loans are now more difficult to acquire especially across African countries. Taking a sample of 410 Africans in China, this study examines the factors that affect the adoption of alternative financing methods for business start-ups. The results show that internet usage in Africa and China, length of residence in China, and the capital intensity of the type of the business to be started are all significant factors to the preference and adoption of alternative financing methods by Africans residing in China. Seeing as research into Africa’s adoption of alternative financing is lacking, this study, this study provides insight where Africans are concerned.

Keywords: Alternative financing methods, Traditional financing methods, Business Start-ups

DOI: 10.20472/IAC.2019.045.029

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