IMPACT OF VENTURE CAPITAL ON THE PERFORMANCE OF SMES IN ENUGU STATE.

Abstract

The study examined the impact of venture capital on the performance of SMEs in Enugu state. The specific objectives are the effect of pre-seed funding on the market share and the effect of seed funding on the revenue growth of SMEs in Enugu state. The study adopts a survey design. A 5-Likert scale was used in the questionnaire to generate the data. Data collected was analyzed using a chi-square statistical tool. The result revealed that Pre-seed funding has a significant positive effect on the market share with a value of χ2 (13.71, p = 0.001) while seed funding has a significant positive effect on revenue growth with a value of χ2 (18.09, p = 0.000). We concluded that venture capital has a significant positive impact on the performance of SMEs in Enugu state, southeast, Nigeria. We recommended that the government should endeavor to develop an effective green credit policy to enable the financial institution to give loan and grant to investors in order to boost the economy.