Awareness towards Crowdfunding as an Alternative Financing Mechanism among Youth Entrepreneurs

摘要

Youth entrepreneurs have difficulties in accessing financing from the financial institutions due to lack of collateral, lack of credit history and high interest rate. Crowdfunding is one of the alternative financing that can be considered to increase the financing options available. In considering crowdfunding, it is important for youth entrepreneurs to have awareness and knowledge on the existence of this alternative financing. This study was conducted to examine the level of awareness, understanding and perceptions of youth entrepreneurs in Institusi Pendidikan MARA (IPMA) towards crowdfunding. In addition, the study also aims to investigate relevant models that youth entrepreneurs in IPMA could potentially engage. Data is analysed using descriptive statistical techniques. The results indicate that most respondents show low level of awareness and understanding on crowdfunding as an alternative financing mechanism. However, based on the perception results, most respondents have positive perception to consider crowdfunding as an alternative way in securing funding for their businesses. The results of the study have important implications for policy makers especially in MARA Higher Education Division, college administrators and educators. Awareness and understanding on crowdfunding can be enhanced by introducing a subject on crowdfunding to entrepreneurships students as part of the curriculum in IPMA.