Venture Capital Financing: An Opportunity for Small and Medium Scale Enterprises in Ghana

Boadu, Francis; Dwomoh, Gabriel; Sarpong, Appiah; Dwomo-Fokuo, Elizabeth

doi:10.5296/jebi.v1i1.5187

Cited by 8 publications

(5 citation statements)

References 14 publications

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“…studied the impact of VC financing on SMEs' growth and development in Ghana. The results indicated that VC-backed firms outperformed non-VC-backed firms by a mild increase of 1.5% in sales revenue, profitability, and a 3.7% growth in the number of employees Boadu (2014),. in his study, Venture capital financing: An opportunity for SMEs in Ghana, found a positive impact of VC financing on SMEs' growth.…”

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confidence: 96%

Impact of venture capital financing on small- and medium-sized enterprises’ performance in Uganda

Kato

Tsoka

2020

The Southern African Journal of Entrepreneurship and Small Busi

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Background: Small- and medium-sized enterprises (SMEs) in Africa and Uganda suffer from lack of finance for their survival and growth. This liquidity emergency motivated start-ups struggling to find alternative financing sources different from conventional bank lending. Venture capital financing evolved as viable financial mechanisms to revive SMEs’ performance.Aim: This article analysed the impact of venture capital financing on SMEs’ performance in Uganda. This is the first empirical study that related and brought together the understanding of business entrepreneurs with those of venture capitalists.Setting: The rate of start-up business failure in Africa remains high, triggering an enormous threat to policy-makers and international development partners. Besides, the literature is diminutive, intermittent and fragmented to document venture capital performance.Methods: The study adopted a mixed-method and used survey questionnaires administered to 90 SMEs and complemented with data from semi-structured interviews. We used multiple regression analysis and correlation coefficient for data analysis generated from the Statistical Package for the Social Sciences.Results: Empirical evidence exhibited tremendous growth of venture-capital-backed companies in sales turnover, profitability and return on assets matched to the non-venture-capital-backed firms.Conclusion: This article presented the first extensive empirical study confirming evidence of venture capital financing for the enhancement of SMEs’ performance and development in Uganda regarding revenue growth, profitability and return on assets. This study recommended to policy-makers and the business fraternity to develop policy frameworks tailored to the enhancement of the venture capital landscape growth.

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confidence: 96%

Impact of venture capital financing on small- and medium-sized enterprises’ performance in Uganda

Kato

Tsoka

2020

The Southern African Journal of Entrepreneurship and Small Busi

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“…The results of development according to Boadu (2008), is job creation, wealth creation, increased revenue through taxes and business growth and expansion. It was found that businesses have improved in the following areas as a result of accessing VCF: a) Business expansion b) Profitability c) Size of workers d) Technical and business advisory services Businesses are established with future in mind.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

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2017

TIJMG

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“…The initial capital fund to kick-start the operations of the VCTF was USD 22.5 million (VCTF Report, 2007). The VCTF was set up against the backdrop of the financial constraints confronting SMEs (Boadu et al 2014). Certain critical areas of the economy have been ear-marked for SME operators to receive financial assistance.…”

Section:  Venture Capital Financing and Private Equity In Ghanamentioning

confidence: 99%

“…Certain critical areas of the economy have been ear-marked for SME operators to receive financial assistance. The areas of interest and where attention is focused on include the information and communication technology, education, agroprocessing, pharmaceutical, financial services and poultry (Boadu et al 2014). Essentially the arrangement of the VCTF is such that VCTF gives credit and equity financial assistance to qualified venture capital financing firms who subsequently assist eligible SMEs for equity and financial assistance.…”

Section:  Venture Capital Financing and Private Equity In Ghanamentioning

confidence: 99%

Theory and Practice of Venture Capital Financing

Asamoah,

Sasa Buckman

2020

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Venture Capital Financing: An Opportunity for Small and Medium Scale Enterprises in Ghana

Cited by 8 publications

References 14 publications

Impact of venture capital financing on small- and medium-sized enterprises’ performance in Uganda

Impact of venture capital financing on small- and medium-sized enterprises’ performance in Uganda

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Theory and Practice of Venture Capital Financing

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