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LIST OF ACRONYMS
Research Aim, Objective, Questions, and Hypothesis
H0: There is no effect of success elements such as trust, awareness, knowledge and regulatory level on the use of crowdfunding as alternative financing in the United Arab Emirates. H1: If crowdfunding in the United Arab Emirates has all the elements of success such as trust, awareness, knowledge and regulatory level; then, the use of crowdfunding as alternative financing will increase.
Significance of the Study
Structure of the Dissertation
This fascinating phenomenon is sweeping the developed world and attracting a lot of attention in developing countries. In addition, we will examine the success factors in the literature that researchers consider to be pillars in the development of a successful crowdfunding industry.
Organizational Background of Crowdfunding
- CF Definition
- Types of CF
- CF, Another Financial Instrument
Crowdfunding platforms are the connectors between projects and financiers, the project image is executed through them and therefore these platforms contribute to investor confidence. If the campaign has achieved its goals, this is an indication that the audience has validated the project.
Comparative Analysis between UK and UAE CF Markets .1 Current CF
In addition, the size of SME participation in the UAE is estimated to be around 60% of GDP, and this share is expected to grow in the coming years. The market volume is still not well determined as the available data in the literature is scarce due to the early formation of CF in the UAE.
Expectations and Challenges
Platform data suggests that around 1.09 million people in the UK invested, contributed or lent using digital alternative finance platforms. Similarly, Zhang, B. 2018) represented a more mature CF market in the UK when they reported that the British Business Bank and the British Business Angel Association estimate that around a third of all UK business angels have invested alongside the crowd through platforms , including around 43% in London, indicating progress in confidence in this market. Despite the increased CF market size, de Buysere et al. 2012) pointed out several disadvantages of the existing crowdfunding system that need to be addressed in the coming years, namely accurate data, the ability to analyze it and risk reduction.
To summarize and based on the previous evidence extended by the World Bank vision, the EU action plan and the UK statistics, the researcher can suggest that the future of CF on an international scale is expected to develop remarkably. Waleed Al Awadhi expressed a very different perspective on the future of the CF market, saying: “It is clear that crowdfunding will have a future in the UAE, even if we are unable to determine whether this future has a massive, stable or small growth. , because it depends on financial knowledge, market knowledge, regulations and policies". To conclude, we can suggest that the UAE authorities have promising expectations for the future CF market and this vision is supported by practical procedures and rigorous evidence to improve regulations and add developed financing methods to the ecosystem financial in the United Arab Emirates.
Success Factors Affecting CF Markets
- Research Objectives and Research Hypothesis
- Research Questions
In the present study, we tried to dwell on the main characteristics that shape this new market, the need to acquire such a market, the expectations and challenges, a broad comparative analysis for the two current markets and finally an in-depth look at the majority of success factors studied. by researchers. This chapter will shed light on the research methodology to be followed in the present study. Sampling procedures, data collection methods and data analysis will be repeated in the third step.
The research objective of this study is to investigate the success factors of crowdfunding as an emerging market in the United Arab Emirates. In an effort to demystify the current position of crowdfunding as an emerging alternative funding source in the UAE, we determined four factors in this study; there are those that would contribute to the crowdfunding success and growth. RQ.1: Is crowdfunding in the UAE equipped with all the necessary factors, namely trust, awareness, risk and regulation; to succeed.
Research Variables
Research Sample
In addition, normality tests, the symmetry test of skewness, and the tail test of kurtosis are used to check some of the assumptions of the inferential statistical tests. Inferential statistical tests are used to draw generalizations and infer the findings from the sample to the population, in addition to comparing and contrasting groups. The parametric T-Test with independent samples and the non-parametric Mann-Whitney U-Test are used to compare categorical or nominal variables across two groups, such as gender as independent variables and continuous variables as a dependent variable, such as the calculated mean score of a Likert scale.
In addition, one-way parametric Analysis of Variance (ANOVA) and the non-parametric Kruskal Wallis H test are used to test the difference between two or more groups in categorical data such as age, education and occupation, on the one hand, and a continuous variable, on the other hand. Similarly, parametric Pearson correlation tests and non-parametric Spearman correlation tests can be used to test whether or not there is any statistically significant correlation between two continuous variables which may be the mean Likert scale scores. Briefly, the Statistical Package for the Social Sciences (SPSS) was used to calculate descriptive and inferential statistical tests.
Validity and Reliability
The pervious gives the sample trends and general trends, whereas the latter infers the results from the sample to the entire population. If the data is normally distributed, parametric tests such as one-way ANOVA, independent samples t-test and Pearson correlation will be used. However, if the data is not normally distributed, non-parametric tests such as Kruskal-Wallis H-tests, Mann-Whitney U-tests and Spearman correlation will be used instead.
Sensitivity analysis uses both parametric and non-parametric tests to increase accuracy. Skewness and Kurtosis measurements are used to check the assumptions of performing parametric tests such as Pearson correlation. The distribution of responses for a variable is considered skewed if it extends to the right or left of the distribution.
Methodology Limitations
Kurtosis is a metric for determining whether a distribution is overly skewed (a very narrow distribution with most responses in the center). Typically, an outlier is defined as a numerical value that is 3.29 standard deviations from the mean, or a standardized value of less than ±3.29. Pairwise imputation was used to handle missing data, while listwise imputation was used for simple descriptive statistics.
Summary
The study distinguished two types of variables as mentioned in the methodology chapter, dependent and independent variables. To answer the research questions, we have divided this chapter into two main main areas of concern: (a) analysis of success factors, (b) inferential statistics. Mainly, out of the four factors, two success factors (awareness and knowledge) were covered using two methodologies which are survey and interviews.
Success Factors Analysis
- The Awareness Scale (first success factor)
- Awareness Analysis Survey Results
- The Knowledge Scale (second success factor) Survey Results
- The Trust Scale (third success factor) Survey Results
- Recommendations & Tendency to Use CF Scale (dependent variable)
Therefore, we can report that more than two-thirds of the sample population (more than 70%) are young, compared to 28% who are elderly. This shows that the majority of respondents are well educated combining the two highest levels of education in which together they make up 88% of the sample. This reveals an agreement between the survey results and the interview responses, both of which indicated a poor level of awareness.
The growth of the industry to date confirms the trust placed in the platforms by many financiers, fundraisers, policy makers and the general public. The questionnaire proposed nine dimensions to determine the level of trust of the respondent, mostly the statements refer to the possibility that the respondent would use CF as an investor. On the other hand, the DFSA highlighted the fact that the financial authorities in the UAE were among the first in the region to develop such an alternative instrument, but the UAE legislation is still not mature.
B - Inferential Statistics
- Correlation
- Independent Samples t-test
- Regression
- Study Implications and Recommendations
- Future Research
The R square indicates the degree of total variation in the dependent variable that can be accounted for by the independent variable. The aim of the current dissertation is to examine the extent of the success factors of crowdfunding as an emerging market in the UAE. The purpose of this research was to determine whether the CF market in the UAE is acquiring all or some of the necessary successful elements.
Finally, the research role would improve awareness, knowledge and confidence in the market. While the current study is a step forward in evaluating the rise of crowdfunding in the UAE, it has limitations. In addition, the easy access to capital for SMEs would encourage the use of crowdfunding in the UAE.
Understanding the crowdfunding phenomenon and its implications for sustainability, Technological Forecasting and Social Change, p. Financial innovation and alternative finance: a comparative analysis of the objectives of regulation and its impact on loan-based crowdfunding in France and the United Kingdom. Washington, DC: License: Creative Commons Attribution CC BY 3.0. Investing in equity crowdfunding in Finland: risks and opportunities.
Success Factors and Complex Dynamics of Crowdfunding: An Empirical Investigation of the Taobao Platform in China.
APPENDICES
Interview Questions The Significance of CF in UAE
Awareness
Knowledge
Trust
My confidence as an investor would increase if the project shows the owner's profile and professional details on the crowdfunding websites. My confidence as an investor would increase, if the project is listed on the crowdfunding websites if the project has already raised money. My confidence as an investor would increase if the project was listed on the crowdfunding websites if the project owner/team would call or email me directly.
It is very likely that I will use Crowdfunding - as an investor or project owner - in the future.
