Open AccessVenture Capital Financing: An Opportunity for Small and Medium Scale Enterprises in Ghana
Author(s) -
Francis Boadu,
Gabriel Dwomoh,
Appiah Sarpong,
Elizabeth Dwomo-Fokuo
Publication year - 2014
Publication title -
journal of entrepreneurship and business innovation
Language(s) - English
Resource type - Journals
ISSN - 2332-8851
DOI - 10.5296/jebi.v1i1.5187
Subject(s) - venture capital , social venture capital , business , finance , revenue , scale (ratio) , entrepreneurship , capital (architecture) , physics , archaeology , quantum mechanics , history
The paper aims to increase the understanding of venture capital industry in Ghana by examining the role of venture capital financing in aiding small and medium scale enterprises (SMEs) in Ghana. Using the conventional questionnaires administration and interviews, analysis of data collected from the Venture Capital Trust Fund (VCTF) and SMEs supported by venture capitalist (VCs) revealed that venture capital companies contributes in the area of fresh funds (23.8%), adding value by providing the beneficiaries with skills/training (33.3%), access to business opportunities (26.2%) and advisory services (16.7%). The findings also show that venture capital financing has a positive and statistically significant impact on job creation (33.3%), revenue for VC and SMEs (33.3%), business growth (16.7%) and expansion (16.7%) in a manner consistent with economic expectation.