Exploring the Factors Influencing Backers’ Decisions to Support Crowdfunding Projects for Sustainable Development

Crowdfunding has emerged as a critical financing mechanism for startups, yet understanding backer motivations remains limited in emerging economies. This study examines the determinants influencing backers’ decisions to support crowdfunding projects in Ghana, where crowdfunding is still in its early stages of development. Drawing on stakeholder theory, five key factors were identified: the target amount of capital, project founder’s track record, societal benefits, ownership stake, and project type. Using partial least squares structural equation modeling (PLS-SEM), data were analyzed using 468 backers across seven regional capitals in Ghana. All the hypothesized relationships demonstrated a significant positive effect on backer decisions. The structural model exhibits strong predictive power, with [Formula: see text] values of 94% for backers’ decisions and 65% for crowdfunding success. The outcome of the Importance-Performance Map Analysis reveals project type as the most critical factor influencing backer decisions, while societal benefit demonstrates the highest performance. The study offers actionable insights for project founders, platform operators, and policymakers, while connecting modern crowdfunding to Ghana’s traditional communal financing systems, including “susu,” “nnoboa,” and “ntoboa.”