Link between Crowdfunding and Growth of SMEs in South Kivu

Abstract

This study examines the relationship between crowdfunding and SME growth in the South Kivu province. The objective is to identify the sub-variables of crowdfunding specifically financial, technical, and social resources that drive SME growth in South Kivu, using logistic regression with a binary dependent variable constructed from a composite index. Data were collected from 105 SMEs in the region. The results show that financial resources remained constant across the sample, technical resources yielded a near-zero, non-significant coefficient, and social resources showed a statistically significant negative coefficient in both models. The control variable (managerial aptitude) proved to be the most robust and significant variable in the model. This study contributes to the empirical literature by analyzing the links between crowdfunding and SME growth in South Kivu; it encourages SME managers to transform the challenges associated with crowdfunding into sustainable opportunities for innovation.

Classification JEL: M13
Paper type: Empirical Research