Volume 29 Number 2, 2024

A Critical Review of Peer-to-Peer Crowdfunding
Model as Alternate Finance for Start-ups

Francis Kwaku Kuma ^a,*, Mohd Effandi Yusoff ^b, Francis Ameyaw ^c, Jerome Jayamana ^d
*a Department of Accountancy, Koforidua Technical University, Ghana
francis.kuma@ktu.edu.gh
^b Universiti Teknologi Malaysia, Skudai, Johor Bahru, Malaysia
effandi@utm.my
^c Department of Accountancy, Koforidua Technical University, Ghana
ameyaw.francis@ktu.edu.gh
^d Raffles University Iskanda, Johor Bahru, Malaysia
jeromejayamana@gmail.com

ABSTRACT

The study gives a detailed examination of Peer-to-Peer crowdfunding and explores the possibilities of recommending it as a better financing option for start-up capital for businesses. Peer-to-Peer by its nature enables borrowers to obtain loans directly from lenders without the use of intermediaries. It therefore makes it easier for business to have access to start-up capital which is not available to them from the more traditional sources. Consequently, the study considers the relevance of this crowdfunding model by reviewing the defining literature and evaluating the dynamics of the model. In particular, the study critically considers the key concepts of the model and how it could be applied practically. The study is conducted in the form of review of literature and expression of opinion. Consequently, the experiential justification of the models presented is outside the scope of this paper. 

JEL Classification: G0, G3

Keywords: crowdfunding, peer-to-peer, startup, capital, alternate

Cite this article: 

Kuma, F.K., Yusoff, M.E., Ameyaw, F., Jayamana,J., 2024, A Critical Review of Peer-to-Peer Crowdfunding Model as Alternate Finance for Start-ups, International Journal of Business, 29(2), 001. https://doi.org/10.55802/IJB.029(2).001