The innovative funding sources become more and more important in the SME sector all over the world especially after the 2007-2008 world financial crisis. In order to develop a new business idea, start-ups and SMEs need a sufficient amount of capital. However, after the financial crisis in 2008, SME sector faced the challenges of attracting new capital. Due to that, an innovative method of fundraising for SME is introduced as crowdfunding. Crowdfunding indicates financing a project or an idea via the internet owing the help from the many investors or donors of a society. Though computer based supportive work studies have initiated to explore how this new type of system influences entrepreneurial work, less is known about the influence of Crowdfunding on Entrepreneur Self-efficacy (ESE) to succeed at a business task. Hence, to minimize the research gap and to achieve the objective of the study, we conducted a quantitative research of 190 entrepreneurs using crowdfunding based on Social Cognitive theory. Based on gender, male entrepreneur constituted 57% while female entrepreneur represented 43% of the sample population. The data were analyzed using Structural Equation Modeling (SEM) in IBM-SPSS-Amos 25.0 and the stated hypotheses were tested. The study found the following direct effects are positive and significant namely, Crowdfunding on Entrepreneur’s Self-efficacy (?=0.924, P=.001). Overall, the result has landed support for crowdfunding can influence self-efficacy of entrepreneur. In order to prove the need of crowdfunding, we have explained and statistically proved that how crowdfunding can provide an additional channel through which firms can obtain finance and take an advantage of fully exploiting the potential of the internet as well as to create self-efficacy of entrepreneurs.
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In-Text Citation: (Hoque, Awang, Salleh, Rashid, & Afthanorhan, 2018)
To Cite this Article: Hoque, A. S. M. M., Awang, Z., Salleh, H. M. F., Rashid, N., & Afthanorhan, A. (2018). Ramification of Crowdfunding on Entrepreneur Self-efficacy. International Journal of Academic Research in Business and Social Sciences, 8(12), 882–895.
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