From Auckland to Colombo: How Crowdfunding Shapes Fundraisers’ Financial Inclusion in Contrasting Economies

Category

Business, Economics and Law

Description of research project

This study explores the differences in crowdfunding usage and its impact on access to financial services for fundraisers in a developed economy (New Zealand) versus a developing one (Sri Lanka). We explore the influence of crowdfunding platforms on fundraisers' financial inclusion and whether outcomes differ between developed and developing economies. Research suggests that the choice between crowdfunding and traditional options, such as bank loans, can impact fundraisers' financial inclusion. In developed economies, crowdfunding is often a popular and affordable method, while in developing countries, it may be the only viable option.

Crowdfunding enhances financial inclusion by serving as an alternative to traditional fundraising, particularly for small businesses and individuals in underserved areas. In rural regions of developing countries, where banks are limited, it connects projects with a broader pool of potential investors, including overseas contributors. This also applies to developed nations like New Zealand, where connecting with a larger audience online can be more effective. The motivations for using crowdfunding vary and are tailored to each fundraiser's unique needs.

While empirical research has made significant strides in understanding various aspects of fundraising, it has yet to clearly outline the specific factors that motivate fundraisers to prefer crowdfunding platforms over more conventional funding options, such as bank loans. This gap in research warrants a closer examination of the reasons behind this shift, including aspects such as accessibility, community engagement, the appeal of lower barriers to entry, and the ability to reach a broader audience. Understanding these motivations could provide valuable insights into the evolving landscape of fundraising and its impact on the financial strategies of organisations.

Therefore, this study aims to explore the motivations behind adopting crowdfunding platforms and the challenges encountered without them, using qualitative interviews with fundraisers.

Inclusion and/or exclusion criteria

Participants will be selected based on the following criteria:

a. Country of residence – the relevant fundraisers must reside either in New Zealand or Sri Lanka
b. Adopter of a crowdfunding platform – the participants should be a fundraiser (i.e. a business owner who has raised funds) via any crowdfunding platform.
c. Age – To participate in the study, the fundraiser must be aged 18 years or older. Generally, individuals must be at least 18 years old to make independent financial decisions without parental guidance and consent. Therefore, we restrict our sample to participants who are 18 or older.
d. Informed consent – the relevant fundraisers must be willing and able to provide informed consent to participate in this study.

Statement of ethics approval

Approved by the Auckland University of Technology Ethics Committee on 2025-12-15 for 3 Years.

AUTEC approval number

25/406

Contact person

Derwyn Hamidon, derwyn.hamidon@aut.ac.nz

Participant information sheet