Question

What is likely to differentiate successes from failures in Kenya crowdfunding programs? Use an example of a project implemented by the Kenya Climate Innovation Center (KCIC).

Answer 1

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Answer:

In an emerging market like Kenya, crowdfunding programs sucess depends on the various factors like the idea of the poject to be implemented, the feasibility of achieving it and the consumer attractiveness on the project etc. Further, the differences can be stated with the help of three highlighted options:

• When implementing a product in Kenya, the access of crowdfunding ecosystem and the necessary attention to get the funds from the people in Kenya is very important in designing the sucess of the project.
• A proper defined and comprehensive plan on the business process should be made without any discrepancies from the local Kenyan markets and leaders
• The efforts and commitment of the project entrepreneur should be long and ever-lasting with proper study towards the consumer & contributed individual's interest.

Explanation using a case study:

Kenya Climate Innovation Centre (KCIC) in december 2014 helped for incubation of Nairobi based small business company which was started by Patrick Kimathi. It was started as a venture to distribute solar lanterns. KCIC helped in training of the employees. This was started as an experiment to test what rewards can be acheieved through crowdfunding for local Kenyan entrepreneurs.

Eventually, Skynotch Energy didn't meet it's expected target revenues and became a failure due to a number of factors:

• They failed to recognize how much they can raise on a crowdfunding platform and how much the netwrok of contributors was actually willing to give to the campaign
• The platform for fund collection & planing did not suit for Skynotch Energy's network. Majority of the Kenyan contributors preferred mobile ways of transaction whereas the chosen platform did not support these requirements.