Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges

Available online at www.rajournals.in International Journal of Management and Economics Invention ISSN: 2395-7220 DOI: 10.47191/ijmei/v11i10.06 Volume: 11 Issue: 10 October 2025 International Open Access Impact Factor: 8.518 (SJIF) Page no. 4742-4752 4742 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges ADEKOYA Adesanya Augustine Department of Accounting, Babcock University, Ilisan-Remo, Ogun State, Nigeria. ARTICLE INFO ABSTRACT Published Online: 20 October 2025 Corresponding Author: ADEKOYA Adesanya Augustine Islamic crowdfunding is a fund-raising strategy from the crowd via the social networking websites or internet for entrepreneurship development in line with Islamic principles to finance shariah compliant core business, product or project. Although, it remains new in Islamic financial system, also scanty and sketches in literatures as alternatives sources of finance for entrepreneurs. It seems unpopular and insignificant in developing countries like Nigeria despite large number of Muslim individuals. In addition, knowledge of the concept is lacking among entrepreneurs, academicians, financial experts, and the general public. This calls for better understanding of the goals, models, opportunities, risk elements, and challenges for its implementation and usage by entrepreneurs. Based on this, the study examined Islamic crowdfunding model for entrepreneurship development in developing countries with focus on Nigeria. The study employed an exploratory research design with focus on relevant literatures on Islamic finance, crowdfunding, financial technology, entrepreneurship, and accounting. The study concluded that Islamic crowdfunding will deepen financial market, grow entrepreneurship, support charitable and philanthropy activities, enhances business ideas reality and growth, improve job creation, contributes to nation’s sustainable development, and promote religious brand that aligns with tenet of Islam and value. The study recommends that trust is critical for its success while there is need for the government to provide operational guidelines and regulatory framework. Furthermore, public awareness, efficient and effective internet service, and establishment of shariah board will support the strategy and the interaction between fundraisers and funders. KEYWORDS: Entrepreneur, Internet, Islamic crowdfunding, Islamic finance, shariah board, Regulatory framework. 1.0 INTRODUCTION Crowdfunding is a technology-based innovation platform that is used to gather funds required by entrepreneur from the crowd or private investors through an online platform. It is a modern financial innovation mechanism that uses the internet to raise funds from the public. It connects two group: (1) Fundraiser or entrepreneur with business ideas, creativity, and talent who required fund to support their ideas, creativities, innovations or projects; and (2) Funders like individuals or organizations with surplus funds looking for where to invest. The two groups connect via an online platform of crowdfunding model or agent for the fulfilment of their personal interest. According to Adekoya (2019) crowdfunding is a new financial innovation mechanism for sourcing for funds by entrepreneurs from the crowd by harnessing the power of the internet. Also, it is a digital market place for direct funding of product or project by connecting fundraiser with funders through an online platform. In recent time, crowdfunding has witnessed worldwide attention and acceptance by entrepreneur as viable alternative source of fund available for financing various business startups, projects, ventures, social cause and cultural activities or projects (Adekoya, 2019; Mollick, 2014). Crowdfunding remains globally an acceptable platform for fundraising and has gained much popularity in the past years (Chandler, Short & Wolfe, 2021; Ishak, Adeyemi & Mohammad Nasir, 2024). However, trust is critical in crowdfunding but with incident of mistrust, it is relatively hard to achieved good success of this financial innovation. Trust in latin word means “Fiducia” which means confident, assurance, security, faith and reliance. Trust is the currency of exchange (Adekoya, Agbetunde & Lawal, 2022). Here, between the fundraisers “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4743 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 and funders, between the resources managers (project initiator) and funds providers. But mistrust will lead to less attraction by funders and crowdfunding campaign will result into an unsuccessful outcome (Wan Mohamad Nazarie & Williams, 2021). In 2023, global crowdfunding market was valued at USD$1.41Billion and this was predicted to double by 2030 besides, Kickstarter remain the most popular model that had been used to fund projects of over 592,000 (Statista, 2023). Likewise, Radzi et al., (2024) opined that crowdfunding market had been predicted to reach US$5.43 billion by 2033 as against US$1.45 billion in 2024. Additionally, the Compound Annual Growth Rate (CAGR) will range between 15.82% in 2025 and 17.3% in 2029. The rising interest of individual in social media platform facilitates the dissemination of contents, models, audios and images; enhance communication; promote campaign; and projected to drive growth in the crowdfunding market. Basically, crowdfunding can be classified into donation, reward, debt or equity to aid entrepreneurship business startup, growth, and development. Worldwide, crowdfunding contributes to sustainable development (Testa et al., 2022., Troise et al., 2021); aid business ideas reality (DaCruz, 2018); enhances transparency to funders on utilization of money raised (Khairuddin & Ishak, 2021); boost economic growth, job creation and improve socio-economic activities (Abdullah, 2016); assist entrepreneur to raise funds from the general public (Ishak & Rahman, 2021); ease the financial difficulty to entrepreneur (Hassanudin et al., 2020); contributed to growth and development of SMEs in developed countries (Adekoya, 2019). Additionally, it plays a critical role in the development of the world’s entrepreneurial financing ecosystem and economic growth; improves entrepreneur capital base, business value and opportunity of being more prosperous. The variant of crowdfunding model are Conventional and Islamic models. However, the focus of this study is Islamic crowdfunding model. This model abides with the tenets of Islamic finance (Shariah) which in recent time has spread beyond Islamic economy (Munshi, 2021). Crowdfunding in Islamic economy abides with principles of shariah to promote wealth circulation in a nation, improve business activities, and social economic growth and development. In countries like Pakistan, Malaysia, Indonesia, Mali and some other developing countries, Islamic crowdfunding has been used to finance various activities likes small farmers; entrepreneurship and business growth; Covid-I9 financial gap; unbanked SMEs and promotion of youth entrepreneur; poverty alleviation; and support for book industry (Purwatininsih et al., 2024; Sylla, 2023; Abdul Rasak, Zulmi & Dawami, 2021; Mustafida, Fayziah & Kurnia, 2021; Kamaruddin & Ishak, 2020). Islamic crowdfunding embraces Financial Technology (FinTech) or online platform for raising funds from large number of individuals to support business ventures, personal causes, charitable projects or products that are halal and religiously based. Islamic crowdfunding provides investors support for small and medium entrepreneurship in their economic business activities through distribution of wealth. It has the greater opportunity of becoming a global financial hub for entrepreneurs with Islamic social finance tools likes Sadaqat, zakat, cash waqf, infaq, and instrument such as mudharabah, ijarah, tawaruq and muzarah. Islamic crowdfunding focuses on risk sharing which is the fundamental principle in Islamic finance. Furthermore, Islamic finance embraces Islamic crowdfunding to promote integrity, trust, honesty, transparency, competency and sustainability. Islamic finance prohibits Riba (interest) in addition to Gharar (unnecessary risk), Maysir (gambling), it also avoids funding of unlawful business or impurity activities (Haram). Adekoya (2022) opined that Islamic finance is not a religious financial system but ethical system for both individuals and business organizations of both Muslim or non-Muslim characteristics. According to Ishak, Aderemi and Mohammad Nair (2024), Islamic crowdfunding will complement the effort of Islamic banking and finance to enhance business growth and development in the informal sector. In Malaysia, Halal crowdfunding has been adopted for financially disadvantage citizens with the use of murabahah model such as Waqf, World, Ata plus, Ethics Kapital, and Nusa kapital (Ramli & Abdullah, 2023). Islamic crowdfunding will aid entrepreneurial ecosystem and social economic development in Islamic economy with the support of FinTech. FinTech is an advanced information technology that enhances the supplies of financial services and products. It aids financial solution or financial intermediary problems. Besides, evolution of technology and development of internet platform has contributed to emergence and effectiveness of crowdfunding as alternative source of funds for entrepreneurs. Entrepreneurship or Small and Medium Enterprise (SMEs) represent the key sector for creative ideas, innovations, business startups, and project development that drives economy and business world. However, raising capital is one of the biggest challenge entrepreneur or innovator face in Nigeria for the realization of their unique ideas and funding their creativity, innovation, and business startup. This is due to stringent policies and lack of collateral for loans from banks and other financial institutions; high risk of business profile and incomplete records of financial worthiness; lack of credit history; and the impact of COVID-19 pandemic which has created financial challenges for entrepreneur in most developing countries. In developed economy, “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4744 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 entrepreneurship contributes significantly to economic growth and development of a nation and remain the largest employer of labour. Therefore, to boost entrepreneurship in developing economy, it required using the appropriate financing model. Hence, using Islamic crowdfunding as alternative source of finance will be of great importance for entrepreneurship and business growth. Besides, Islamic crowdfunding still remains new in the Islamic banking and finance financial system. It is scanty and sketches in literature as alternative sources of finance for entrepreneurs. It remains unpopular and insignificant in developing country like Nigeria despite large population of Muslim in the country. The objective of the study is to outline and explain the concept of Islamic crowdfunding; to promote its usage as alternative sources of finance for entrepreneurship business startup, expansion and growth; to create awareness among the citizens especially the potentials users of Islamic crowdfunding as one of the modern platform to source funds with less stringent process compared to conventional financial institutions; and to explore the importance of Islamic crowdfunding and its mechanism. Theoretical implication of the study is the contribution to frontier of knowledge and literatures on Islamic crowdfunding as alternative sources of finance which remains an emerging issue with less related research, acceptance and implementation in developing economy like Nigeria to support entrepreneurship growth and development. 2.0 REVIEW OF EXTANT LITERATURE 2.1 Conceptual review 2.1.1 Islamic Crowdfunding Model: Crowdfunding is a platform with a principle of social solidarity to fund ideas, projects, visions or creativities. In Islamic economy, crowdfunding aligns with the purpose of Islamic finance of wealth redistribution and efficient management of financial resources. Islamic crowdfunding is a fund-raising strategy from the crowd through the internet or social networking websites for entrepreneur in line with Islamic principles to finance shariah compliant core business or operations. It is a platform to gathered funds from large number of individuals or organizations to fund religiously permissible or halal projects or products. The model operates in a unique manner according to Islamic principles and shariah tenets (Kasri & Mustaque, 2021). The variant of the model are Donation, Reward, Equity and Debt (P2P). Each of these variants act as alternative sources of finances for entrepreneur in startup business or project compared to other conventional financial institutions or banks. In developed country like United Kingdom, there is “Yielders” an Equity based Islamic crowdfunding that focuses on properties where yielders crowd funders purchased shares in a funded property, this is let for steady stream of incomes and capital appreciation. Also, in Indonesia, there is iGrow which focuses on agricultural sector by connecting the farmers with agricultural produce funders. This connects investor who have no farming skills but has excess funds with farmer with the required farming skill but lack capital. Additionally, in Malaysia GlobalSadaqah.com platform was created for Islamic charity with campaign for Zakat, Sadaqah and Cash Waqf. Hence, Islamic crowdfunding must be managed in line with Islamic finance or shariah principles by avoiding: interest (Riba); funding of unlawful business or impurity activities (Haram) likes pornography, cheating, gambling, alcohol, pork products and other activities that are harmful to the citizens and the nation at large; avoid taking unnecessary risk and speculation (Gharar) but, to invest in religiously permissible projects or halal products. Moreover, Islamic crowdfunding model will promote religious brand which aligns with Islamic finance tenets and values likes Ihsan (Kindness), promote amanah (trust), and encourage ta’awun (corporation). However, shariah supervisory board will be required to evaluate and approve such advertised halal products or projects through the internet or Financial Technology (FinTech) platform. Basic requirements for Islamic crowdfunding framework are: (1) project initiators (business or religious organization, individual or community) they present project or product pictures, architectural designs, models, movies, charts or data analysis in electronic form and uploaded to crowdfunding operator platform for potential funders consumption and appraisal for funding decision making; (2) potential funders; (3) crowdfunding operator; and (4) board of shariah (the board identify Islamic or halal projects or products provided by crowdfunding operators to potential funders). “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4745 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 Figure 1: Islamic Crowdfunding Platform Model 2.1.2 Table 1 Types of Islamic Crowdfunding Type Type of Activity or Purpose Islamic Instruments or Contracts Beneficiary or Institution Donation Charity or Philanthropic; wealth distribution; social development initiatives. Qard-Hassan, Hibah (Gift), Murabaha, Waqf (endowment), Zakat (tax), Sadaqah (Donation), Infaq (Contribution) Poor section of the society; individual on health issue; community; non-profit organization (NGO); religious organization Reward Product/Gift; nonfinancial reward Hibah (Gift) Infaq (Donation) Small and Medium business enterprises; Startup business; Microfinance Equity Investment; micro finance; social innovation and entrepreneurship Mudharabah (Profit Sharing), Musharakah (Partnership) Muzarah(Partnership) Startup enterprises; unemployed; entrepreneur Debt (P2P) Investment; working capital; micro finance Murabahah (Cost plus profit), Tawaruq (Deferred sale payment), Ijarah; Qard (Loan) Micro/medium enterprises; Micro finance; entrepreneur 1. Donation: This is a form of gift or donation from large number of people towards a chosen cause (Charitable or Philanthropic activities) based on spiritual intelligence without any form of credit or rights towards the cause or project. In Islamic economy, donation is a form of Sadaqah. According to Holy Quram (57:18), men or women who give Sadaqah advanced good loan to Allah SWT with noble reward. Donation based is used to support individuals or communities in needs in areas or causes likes health, disasters, schools or religion institutions (Othman et al., 2021). Waqf is a variant of donation model and it is Islamic endowment performed by Muslims using their wealth as support to Allah for the benefit of the society. It is a charitable initiative for community development in areas of health educations, securities and projects. Also, Infaq is a voluntary philanthropic wealth contribution in tangible or intangible means and the funders enjoy rewards thereafter rather than immediate monetary returns. “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4746 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 2. Reward: This is a progressive Islamic finance model with interest free loan for business and individual in line with shariah principles or laws. Funders finance project or product without expectation of monetary reward from fundraisers rather heartfelt thank you notes. Funders support project inventor with expectation of reward in form of tokens of small gifts (Hibah) which are normally provided for funders as a means of appreciation. It promotes social welfare and financial inclusion where contributors channeled funds toward provision of socially impactful projects or products within the community. 3. Equity: This is a form of money investment in a business or project with equity returns in forms of percentage ownership in shares, or stake in project, venture or business. It means money exchange for share in business. A form of partnership contract likes Musharakah, Mudharabah, and Musharakah Mutanaqisah. Alternatively, it involves arrangement between two parties such as Rabbal-mal (capital provider) and Mudharib (labour provider). 4. Debt: Investors or contributors set fixed investment returns for certain period. However, Islamic economy prohibit riba (interest) form of business and therefore adopts Murabahah, Qard (loan), Tawaruq, and Ijarah contract model. 2.1.3 Opportunities of Islamic Crowdfunding 1. It enhances cheaper access to business capital for entrepreneurs without collateral. 2. It promotes innovations, ideas and creativities. 3. It enhances job opportunities through funding of startup business. 4. It aids or support business growth and development. 5. It fills the financial gaps left by conventional financial institutions. 6. It facilitates financial inclusion for less privilege communities. 7. It provides opportunity for social interaction and future connection. 8. It reduces cost and time required by entrepreneur to raise required fund compared to conventional financial institutions. 9. It eliminates geographical barrier to fund raisings. 10. It attracts positive and impactful investment that are religiously approved by shariah board. 2.1.4 Risk Associated with Islamic crowdfunding: Islamic crowdfunding is associated with many risks such as: (1) Market riskcapital consideration causes market risk; (2) Technology riskweb error or cyber-attack or bug causes difficulty in accessing the web site or online application. (3) Investor riskcases of money laundering, default and fraud. (4) Operational risklack of raw materials, inflation, machine breakdown, and labour shortage or inefficiency. (5) Entrepreneurial riskstartup business challenge, business failure, short live tenure capability, design failure or duplication, untimely death of entrepreneur. (6) Investment project riskrisk associated with startup business like national disaster outbreaks, liquidity problems, and farmer management failure. (7) Shariah compliant risk – non-interest business nature risk, lack of Islamic regulation or laws to guide, ineffectiveness and inefficiency of shariah board members. 2.1.5 Table 2 Differences between Conventional or Traditional Crowdfunding and Islamic Crowdfunding Features Conventional or Traditional Islamic Investment returns Interest based (debt based); Equity based or non-financial rewards Profit sharing agreements (Mudarabah), Murabaha; Donation based: charity (sadaqah) or Zakat (alms) or Wagf (Islamic endowment) where return is non-financial rewards. Shariah compliance No specific requirements Strict adherence to shariah principles Project focus Diverse range of projects or products Projects or products that aligned with Islamic values and social welfare that are shariah compliant. Oversight control Platform based oversight, other regulatory market and financial policies Shariah board oversight in addition to platform-based oversight. 2.1.6 Challenges of Islamic Crowdfunding Development 1. Trustthis is critical in economic and social interaction where uncertainty and risk are involved. Ability to gain funders trust and to build trust in the business or project remains a major challenge. 2. Lack of awareness by potential users of Islamic crowdfunding and its recent phenomenon. 3. Minimal display, showcase or advertisement of product or project on crowdfunding platform by entrepreneur or fundraiser to attract funders. 4. Strict compliance to the tenets of Islam and power of shariah board to govern, regulates and approve only projects or products that are halal compliance or those permitted by Islamic religion. “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4747 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 5. Money laundering, terrorism or crime funding could arise where exists collusion of investors to funds business under illegal business enterprises. 6. Risk associated with design theft, patent infringement or duplication of idea, innovation or creativity model presented at the advertisement or negotiation stages. 7. Weak internet connectivity and low coverage that affects digital payment mechanism and financial services. 8. Absence of instant laws and regulations in most countries, and internationally recognized standards as it relates to Islamic crowdfunding functionality. 9. Act of corruption, social or political unrest that might slow down progress of entrepreneur or business financial liquidity. 10. Challenges of asymmetry of information between funders and entrepreneur. 2.1.7 Entrepreneurship development: Entrepreneurs are innovators, ideas creators and business initiators. They are tag as backbone of a nation for job creation and economic growth. They have critical roles in a nation development in areas of political (wealth redistribution, economic growth, and business opportunity); Social (community growth, poverty reduction, and security); and Economic (employment opportunity, wealth creation, investment in local technology, and creativity for nation growth). Despite the enormous benefit of entrepreneurs to nation building, they still faced the challenges of sourcing for required capital due to problems likes: limited collateral capacity, legal status, lack of documentation, risk associated with business, unstructured or informal nature of business, and conventional financial institutions reluctant to advance loans to them due to high risk of default, minimal profitability and perceived high cost of transactions. Entrepreneur access to capital required to startups business and required funds as working capital has been a critical task from conventional financing institutions. Hence, calls for alternatives sources of funds is very important and this could be achieved through Islamic crowdfunding financing platform. Entrepreneurship is synonymous to Small and Medium Enterprises (SMEs) and it varies from country to country with no specific definition but depends on parameters like fixed assets values, capital outlay, market share, number of employees, production capacity, capital employed, method of technology used, and management characteristics. In Nigeria, National Bureau of Statistics and SMEDAN (Small and Medium Enterprises Development Agency of Nigeria) classified entrepreneur or SMEs based on their assets values and number of employees. It is regarded as a business entity having between 10 to 199 employees with assets based (with the exception of land and building) ranging from ₦5 million to ₦500 million. It is classified into Micro, Small and Medium enterprises. Table 3. Entrepreneur or SMEs Classification in Nigeria Classification Micro Small Medium Employees ≤10 10 – 40 50 -199 Assets (Excluding land and building) ≤₦5 million ₦5 million - ≤₦50 million ₦50 million - ≤₦500 million SMEs are seen as playing a pivot role in economy’s development of many countries. They propel economic growth and development; creates job; ensure entrepreneurship, product and business development. In Asian countries like Malaysia, India and China, SMEs had contributed massively to the economic growth and development of these countries. But in developing economy like Nigeria, despite government support for business growth, provision of conducive environment and good regulatory framework, finance still poses challenges to many SMEs or entrepreneur for startup business and business growth. 2.1.8 Financing Need of Entrepreneurs in Nigeria and other developing countries Globally, SMEs financing problem is a common thing. Entrepreneurs are more constrained in raising fund when compared to big companies. World Bank report shows that between 37 percent and 39 percent of SMEs or entrepreneurs lack access to capital required for business operation and this had led to sudden business failure or liquidation. According to Adekoya (2022) entrepreneur access to startup capital has been a wearisome task from conventional financial institutions, it affects their growth and development, hence, this called for alternative sources of funds. Moreover, the advent of social media or online interactive platforms has increased the popularity of crowdfunding as a modern alternative source of finance for entrepreneurs. Hence, Islamic crowdfunding as variant of crowdfunding follows the tenet of shariah in providing finance for SMEs and entrepreneurs where conventional financing methods are missing. 2.1.3 FinTech: FinTech involves two variables: Finance and Technology. Globally, it has become an important and dynamic parts of financial services. FinTech industry has advance in recent years with new innovation to ease business transactions, financing, and investments opportunities. It has changed the landscape and operations of traditional financial institutions. Besides, Islamic FinTech is the combination of technology and Islamic finance where financial transactions “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4748 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 complied with Islamic rules and regulations. However, Islamic crowdfunding based FinTech has been reported as a reliable alternative sources of finance for entrepreneur when compared with conventional banking and financial institutions. 2.2 Theoretical Review The study focuses on Social Exchange Theory and Technology Acceptance Model. 2.2.1 Social Exchange Theory: The theory stipulated that social behavior occurred from exchange process. This exchange process is for an individual to maximize their benefit and also minimize their costs. According to Rusbult (1963), individual in most cases, will weigh potential benefit against the potential risk or cost associated with social relationship. Likewise, Homans (1958) reported that in social interaction, types of merchandises exchange depend on the social behavior of individuals. However, social behavior is synonymous to interaction where an action carried out by one individual is rewarded or punished based on the action undertaken by another individual. In Islamic crowdfunding, entrepreneur may trade off the perceived advantages likes innovative products and creativity ideas against the perceived costs likes intellectual or idea theft, shortage of funds, delayed in product delivery and patent infringement which affects trust, attitude, and commitment toward Islamic crowdfunding projects. According to Homans (1958), trust and communication are the basis of interaction models between individuals or organizations by which the social exchange theory postulate. The study adopts social exchange theory to explain exchange behaviors between entrepreneur (fundraiser or project initiator) and funders (financiers) in Islamic crowdfunding where mutual trust, communication, and commitment are established through Islamic crowdfunding platforms to enhance social exchange behaviors and benefit. 2.2.2 Technology Acceptance Model (TAM): Technology Acceptance Model (TAM) was proposed by Fred D. Davis in 1985 at Massachusetts Institutes of Technology (MIT), USA. His doctoral thesis anchored on the previous theory of reasoned action formulated by Fishbein and Azjen (1975). The TAM model was designed to show how individual adopts and used technology in decision making. This theory is adopted based on three factors: perceived usefulness, perceived ease to use, and individual attitude towards usage. According to Davis (1986), perceived usefulness is the individual believe that technology will enhance performance, perceived ease to use means individuals believe that technology will enhance freedom from physical effort, minimize time and cost, also enhances effectiveness and efficiency. Moreover, perceived usefulness and perceived ease to use drive the individual attitudes toward technology usage in decision making. This act as the determinant factor in accepting technology. According to Davis et al., (1989), individual will accept technological innovation where it seems to be useful, easy to use and beneficial to the society. TAM explain how individual or organizations embraces and make use of technology in social networking platform for financial decision making. 2.3 Empirical Review Purwatininsih et al., (2024) examined bibliometric analysis of Islamic crowdfunding. The study revealed that Islamic crowdfunding characterized by interdisciplinary scholarship has emerged as significant alternative source of finance to support the society and the economy in enhancing poverty alleviation and sectorial development. In addition, Karakulah and Muneeza (2024) studied the role of donation-based crowdfunding in Islamic social finance, and reported that donation-based crowdfunding platform or tools surpass the conventional financing tools, hence, evolving as instrument of Islamic social finance with philanthropy global impact. Likewise, Sarfraz, Ayub and Ellahi (2023) investigated factors that affects the perceptions of university students on the use of Islamic equity crowdfunding in Pakistan. The study revealed that project innovativeness, perceived informativeness, risk of investment, helping attitude, and protection policy positively influence the investors or students’ willingness to invest in Islamic equity crowdfunding platforms. Also, Sylla (2023) looked at muzara’ah based crowdfunding for financing small farmers in Mali. The study revealed that muzara’ah model provides the necessary funds required for enhancing agricultural activities and proffer solution to financing problem encounter by farmers in Mali. Besides, Ramli and Abdullah (2023) investigated Islamic crowdfunding in Malaysia with focus on Nusa Kapital. The study revealed that Nusa capital was established to funds growing entrepreneur in Malaysia using Murabah (debt based) concept for entrepreneur financing needs. Here, assets are purchased and sold at cost plus profit to entrepreneur after comprehensive evaluation of creditworthiness and projects transparency. Khairuddin and Ishak (2023) also looked at Islamic crowdfunding model for empowering entrepreneurship program in Malaysia. The study revealed that crowdfunding should be promoted to support business activities, community-based projects, and support for student entrepreneurship programs in universities. In addition, Fahmy and Zahra (2023) studied Islamic securities crowdfunding based on Indonesia Islamic and positive law perspective. The study revealed that Qur’ran Hadith, legal maxim, Maqasid of shariah and Syirkan musahamah contract supports the practice of Islamic securities crowdfunding. Hence, by law’s perspective Islamic crowdfunding accommodates four principal regulators, these are organizers, crowdfunding services, issuers and financiers. Also, Salaheddine and Rami (2023) examined the advantages and “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4749 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 challenges of Islamic crowdfunding as an alternative source of finance. The study revealed that FinTech supports to Islamic crowdfunding simplified lending and access to funds by entrepreneur and small business. In the same vein, Boulahbel (2021) looked at crowdfunding as an alternative model for Islamic finance for startups business. The study revealed that Islamic crowdfunding carries the core value of Islamic finance. Although, Islamic crowdfunding is new and slow in growth with various challenges likes lack of regulatory framework, digital payment challenges, lack of citizens awareness and trust, and unclear shariah board screening process. Liman and Usman (2024) also explored the determinant of Islamic crowdfunding adoption in Nigeria. The study revealed that perceived usefulness, ease of use and subjective norm have significant influence on investors intention to use Islamic crowdfunding model in Nigeria while perceived risk has no significant influence on investors intention. Furthermore, Abdul Rasak, Zulmi and Dawami (2021) investigated customers’ perception on Islamic crowdfunding as alternative financial solution to COVID 19 crisis in Malaysia. The study revealed that Islamic crowdfunding concept of justice and fairness significantly influenced the acceptance of Islamic crowdfunding. Besides, Mustafida, Fayziah and Kurnia (2021) examined the development of Islamic crowdfunding in Indonesia and its impact on SMEs. The study revealed that Islamic crowdfunding provide accessible financial services to unbanked SMEs, provide them with ease of obtaining capital fund, improve their welfare, and creates economic growth in the long run. Furthermore, Salim, Kassim and Thaker (2021) examined the factors that influence the acceptance of Islamic crowdfunding for youth entrepreneur in Malaysia. The study revealed that perceived case of use and usefulness, self-efficacy, financial accessibility and Islamic platform have positive influences on youth entrepreneurs’ intention to accept Islamic crowdfunding. Additionally, Hendratmi, Ryandono and Sukmaningrum (2020) studied how to developed Islamic crowdfunding website platform for startup business in Indonesia. The study revealed that Islamic crowdfunding website development as a form of innovative acceleration will provide alternative funding platform for a startup business, expand business growth and ensure sustainable business development. Also, the website platform will link cross geographical investors with entrepreneur. Finally, Kamaruddin and Ishak (2020) looked at Islamic crowdfunding platforms as alternative for book fundraising in Malaysia. The study revealed that Islamic crowdfunding has the potential to support entrepreneurs in the book industry due to limited support from the alternative financial institutions. 3.0 METHODOLOGY The study adopts exploratory research design. Relevant books, journals and other literatures on Islamic finance, crowdfunding, financial technology, entrepreneurship, and accounting were reviewed. Thereafter, conclusion was drawn while appropriate recommendations were made for increasing the frontiers of knowledge. 4.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS 4.1 Summary and Conclusion Globally, Islamic crowdfunding is a business financial platform established with the tenet of shariah principles, values and goals. It is a branch of Islamic finance meant to: deepen financial markets by mobilizing funds for entrepreneurship development, support poverty alleviation and sectorial development (Purwatininsih et al., 2024); enhance instrument of Islamic social finance with global impact on Philanthropy (Karakulah & Muneeza, 2024); be used to eliminate financing challenges encounter by farmer (Sylla, 2023); be used to grow entrepreneurships (Ramli & Abdullah, 2023); be used as key supporter for book industry (Kamaruddin & Ishak, 2020). In Malaysia, halal crowdfunding focus on financially disadvantage citizens with the use of Murabahah principles. Likewise in United Kingdom, equity based Islamic crowdfunding tag “yielders” focuses on properties where the yielders crowd funders purchased shares in property with expectation of stream of income and capital appreciation in returns. In Indonesia, iGrow was adopted to funds agricultural sector by connecting the farmers and funders of agricultural produce. In addition, IDB that is based in the city of Jeddah, Saudi Arabia gives Zakat on yearly basis and this estimated between US$230 billion and US$560 billion. Similarly, Dubai government reported that Waqf assets worldwide worth approximately US$1 trillion. Moreover, Islamic crowdfunding grows the financial sector in Arab countries by connecting fundraisers with funders of shariah compliant projects likes charities, real estate, agriculture and SMEs via the internet. Also, LaunchGood is built for Muslim fundraisers with 0% platform fees as a network for generous donors. In Asian countries like Malaysia, Indonesia, and Pakistan with large Muslim population, Islamic crowdfunding platforms have active operation and significant potential to offer shariah compliant financing solution for business and social projects with platform likes Ata Plus, Waqf World, Ethis Kapital, and Nusa Capital. Furthermore, adoption of FinTech in Islamic crowdfunding has changed the process of access and lending of funds to entrepreneur and SMEs in some developing countries. FinTech will aid entrepreneur ecosystem and socio-economic development in Islamic economy. Technology matched with Islamic ethics and principles will aid the implementation of “Islamic Crowdfunding Model for Entrepreneurship Development in Developing Countries: The Goals, Opportunities and Challenges” 4750 ADEKOYA Adesanya Augustine, IJMEI Volume 11 Issue 10 October 2025 shariah compliant core business and financial operational system. Besides, a good regulatory process will minimize fraudulent activities and scams in the Islamic crowdfunding model while it has the greater opportunity of becoming a global financial hub for entrepreneurs. However, trust is critical to the success of this financial innovation and this will be achieved where all agreements and transactions are carried out in an honest and transparent manner to earn funders confidence and enhancement of future support. Likewise, according to Abdul Rasak et al., (2021), justice and fairness significantly influence the acceptance of Islamic crowdfunding. It has been established that Islamic crowdfunding contributes to sustainable development, business ideas reality, boost economic growth and development, and also improve job creation. Mustafida et al., (2021) also reported that Islamic crowdfunding will promote access to financial services for unbanked entrepreneur, ease entrepreneur welfare and access to funds, enhances business growth, and add value to nation’s economic growth and development. Additionally, Islamic crowdfunding model will promote religious brand that aligns with the tenet of Islam and value. It will serve as alternative funding support for entrepreneurs’ business growth and development using Islamic instruments or fund related to religion likes Zakat (tax), Hibah (gift), Infaq (contribution), Sadaqah (donation), Mudharabah Muzarah and Musharakah (partnership), Gard (loan), and Waqf (endowment) to tackle liquidity problem. Although, Islamic crowdfunding still remain new and at the nascent stage in Nigeria but has greater potential of becoming game changer in financial institution for entrepreneurship development considering the large Muslim population. Besides, Mudharabah principles and equity based Islamic crowdfunding can be used to: ease financially disadvantage entrepreneur, fund agricultural sector, enhance food security and create stream of income to farmers. Donation and reward model can be used for philanthropy and charitable social projects or products. However, Islamic crowdfunding awareness is very low among individuals, professionals, and entrepreneurs in addition to weak regulatory laws or controls for its implementation in entrepreneurship financing. Boulahbel (2021) also reported that Islamic crowdfunding is insignificant in growth due to lack of regulatory framework, digital payment challenges, mistrust, and ineffective of shariah board committee in screening halal projects. Although, conventional crowdfunding had contributed to the growth of entrepreneur or SMEs in country like China and contributed to the economy as the second largest economy in the world. Likewise, Islamic crowdfunding has added value to entrepreneur in Malaysia, Indonesia, Pakistan, Mali, United Kingdom and other countries. Therefore, in developing countries like Nigeria, entrepreneur can embrace Islamic crowdfunding financing platform. This modern funding platform will be beneficial to both Muslim and NonMuslim customers from both fundraiser and funder perspective. Finally, project or product to be funded must be censor by Bord of Shariah to ensure that the project or product qualified in terms of Islamic halal requirements and also aligns with the tenet of shariah. 4.2 Recommendations To achieve seamless acceptance, implementation, and usage, the following could be addressed: 1. Production of operational guidelines 2. Provision of legal and regulatory framework 3. Platform registration with security and exchange commission. 4. Cooperation with Islamic financial institutions 5. Public awareness of Islamic crowdfunding 6. Establishment of competent and experience shariah board members to monitor, control and approve all halal compliance projects and products. 7. Stimulating risky sectors 8. Efficient and effectives internet service. 9. Open discussion to ensure transparency in investment choice. REFERENCES 1. Abdul Rasak, D., Zulmi, S. R., & Dawani, Q. (2021). Customers'perception on Islamic crowdfunding as a possible financial solutions for the pandemic COVID 19 crisis in Malaysia. Journal of Islamic Finance, 10(1), 92-100. 2. Abdullah, A. (2016). Crowdfunding as an emerging fundraising tool: with special refrence to Malaysia regulatory framework. Islam and Civilizational Renewal, 7(1), 98-119. doi:10.12616/0027170 3. Adekoya, A. A. (2019). Crowdfunding and SMEs financing in Nigeria: Threat and opportunities. International Journal of Development Research, 9(9), 30091-30100. 4. Adekoya, A. A. (2022). Islamic banking and finance in developing countries: The goals, challenges and prospects. International Journal of Economics, Commerce and Management, 10(5), 348-369. 5. Adekoya, A. A., Agbetunde, L. A., & Lawal, A. B. (2022). Trust relationship and tax compliance in developing countries - Informal sector perspectives. International Journal of Economics, Commerce and Management, 10(6), 309-332. 6. Boulahbel, Z. (2021). Crowdfunding as an alternative form of Islamic financing for startups and small enterprises. South East Asian Journal of Comtemporary Business, Economics and Law, 24(1), 100-107. 7. Chandler, J. A., Short, J. C., & Wolfe, M. T. (2021). Finding the crowd after exogenous shocks: Exploring the future of crowdfunding. Journal of