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

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


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.

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