ABSTRACT
The impact of venture capital financing on small and medium scale enterprises in nigeria and the Uyo Local Government area was investigated. Various laws and acts, notably the Venture Capital Fund to aid SMEs, have been enacted as a result of successive governments’ efforts to boost the performance and growth of SMEs. SMEs in Nigeria continue to confront liquidity and funding issues, which have resulted in production failures, industrial disputes, and regulatory authority closures.
The impact of venture capital financing on small and medium scale enterprises in Nigeria
Using convenience sample approaches, 50 questionnaires were distributed to managers/SME owners operating within the Uyo Local Government region, with a concentration on Elsa Foods Ltd, in order to meet the study’s objectives. SME’s were found to prefer self-financing and to accept financial institution support only on rare occasions.
The majority of SMEs, on the other hand, were unaware of or had limited knowledge of Venture Capital Financing as a source of funding. Firms who have profited from Venture Capital Financing have indicated that they received not just investments, but also monitoring, technical skills and knowledge, access to management, marketing and distribution, and a reputation for recruiting additional capital.
According to the survey, SMEs should be aware of the benefits of pursuing equity financing from venture capital. Venture capital fund managers may do a lot to attract corporate investors to invest in venture capital. In order to encourage venture capital, government and policymakers should play a dual role as facilitators and instructors. Following the conclusions and recommendations, a more in-depth study involving SMEs from various industries will be conducted.
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