The Impact of Crowdfunding on Social Entrepreneurship in Morocco: A Structural Equation Modeling Approach

Abstract

Faced with challenges in accessing traditional funding, crowdfunding offers an innovative solution. It enables social entrepreneurs to raise funds while mobilizing communities sensitive to their social and environmental goals. Indeed, crowdfunding has seen remarkable growth in developed countries and represents an exponentially growing global market.

In Morocco, the new Law No. 15-18 on collaborative financing, introduced in 2021, removed regulatory barriers blocking crowdfunding development. This law, finally adopted several years after it was drafted and thirteen years after the practical emergence of crowdfunding in the United States marks a new step in diversifying Morocco's financial instruments. Its goals include strengthening financial inclusion for young project holders, supporting economic and social development, and channeling collective savings into new opportunities.

This article examines the impact of crowdfunding on social entrepreneurship financing following the introduction of Law 15-18 in Morocco. Using structural equation modeling, we analyzed the relationships between crowdfunding, social entrepreneurship financing, and the newly introduced Moroccan regulations. The study was conducted with a sample of 200 Moroccan internet users.

To draw valid conclusions, we adopted a methodological approach rooted in the postpositivist paradigm, using a hypothetical deductive approach where the hypotheses were derived from theory. Following this logic, we employed a quantitative approach based on structural equation modeling, explicitly using the LISREL method. By validating the research hypotheses, we demonstrated that crowdfunding, supported by Law No. 15-18, plays a crucial role in providing access to financing for social projects.

Keywords: Social entrepreneurship, Crowdfunding, collaborative financing.

Classification JEL : B55, C3, L31, F65, G23

Paper type: Empirical Research