Seminari - Orsola Garofalo

Orsola Garofalo (Copenhagen Business School) will present her paper “Crowdfunding for Youth Entrepreneurship in Tanzania: Evidence from a field experiment," alongside Nsubili Isaga (College of Business Mzumbe University), Hadar Gafni (King’s Business School), Pascal Daudi Ndaki (College of Business Mzumbe University), Diego Zunino (KTO Research Center), Lars Bo Jeppesen (Copenhagen Business School), and Hawa Pedro (College of Business Mzumbe University). 

Abstract:
Crowdfunding offers an alternative financing method but is hindered by home bias and geographical barriers. Investors often prefer culturally similar and proximate entrepreneurs, limiting cross-border funding opportunities. Despite increasing research, little is known about effective strategies for fund-seeking entrepreneurs. This study examines the impact of crowdfunding training on funding success through a randomized field experiment in Tanzania. In June 2023, 400 youth entrepreneurs from the Small Industries Development Organization (SIDO) database were selected, with 200 randomly assigned to receive training based on a structured crowdfunding manual. The remaining 200 served as a control group. Results show that trained entrepreneurs achieved higher funding success rates and secured funding more quickly than their untrained counterparts. These findings suggest that structured training mitigates informational barriers, improving crowdfunding outcomes. The study highlights the importance of integrating crowdfunding education into entrepreneurship support programs to enhance financial access for young entrepreneurs in developing economies.