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Factors Affecting the Adoption of Alternative Financing Methods for Startups by Africans in China

Author

Listed:
  • SANDRA OBIORA

    (UNIVERSITY OF ELECTRONIC SCIENCE AND TECHNOLOGY OF CHINA)

  • YONG ZENG

    (UNIVERSITY OF ELECTRONIC SCIENCE AND TECHNOLOGY)

Abstract

Alternative financing methods such as Crowdfunding, and Peer-to-Peer lending in the past few decades are becoming more sort after means of business start-up financing. On the other hand, traditional financing methods such as bank loans are now more difficult to acquire especially across African countries. Taking a sample of 410 Africans in China, this study examines the factors that affect the adoption of alternative financing methods for business start-ups. The results show that internet usage in Africa and China, length of residence in China, and the capital intensity of the type of the business to be started are all significant factors to the preference and adoption of alternative financing methods by Africans residing in China. Seeing as research into Africa?s adoption of alternative financing is lacking, this study, this study provides insight where Africans are concerned.

Suggested Citation

  • Sandra Obiora & Yong Zeng, 2019. "Factors Affecting the Adoption of Alternative Financing Methods for Startups by Africans in China," Proceedings of International Academic Conferences 9010883, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:9010883
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    References listed on IDEAS

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    1. Justin Yifu Lin, 2011. "China and the global economy," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 213-229.
    2. Annamaria Conti & Marie Thursby & Frank T. Rothaermel, 2013. "Show Me the Right Stuff: Signals for High‐Tech Startups," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 341-364, June.
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    4. Cole, Rebel A. & Goldberg, Lawrence G. & White, Lawrence J., 2004. "Cookie Cutter vs. Character: The Micro Structure of Small Business Lending by Large and Small Banks," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 39(2), pages 227-251, June.
    5. Davila, Antonio & Foster, George & Gupta, Mahendra, 2003. "Venture capital financing and the growth of startup firms," Journal of Business Venturing, Elsevier, vol. 18(6), pages 689-708, November.
    6. Kellee Tsai, 2015. "Financing Small and Medium Enterprises in China: Recent Trends and Prospects beyond Shadow Banking," HKUST IEMS Working Paper Series 2015-24, HKUST Institute for Emerging Market Studies, revised May 2015.
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    More about this item

    Keywords

    Alternative financing methods; Traditional financing methods; Business Start-ups;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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