Venture Capital Financing and The Growth of Small and Medium Scale Enterprises in Calaber Metroplis, Cross River State, Nigeria

Abstract

The major thrust of this work was to investigate the impact of venture capital financing on the growth Calabar metropolis Cross River State. The rationale for this study was to determine whether the use of venture capital finance, as one of the new sources of financing options by SMEs in Cross River State could create a significant impact on the growth of SMEs. In carrying out this work, a hypothesis was formulated. The financial contracting theory was adopted by the study. The exploratory research design was utilized. In the study, a non probability sampling method (purposive) was used. Using the Yamane formula, a sample of forty (40) SMEs from among the SMEs in Calabar metropolis was selected. The manager, accountant or account officer and secretary were purposively selected and included in the sample. Information were gathered with the utilization of organized solid and approved polls. An aggregate of 120 polls were directed, however 80 recovered. The information was examined with the utilization of various relapse investigation introduced in tables. The discoveries of this examination uncovered that there was a critical effect of investment back on the general development of SMEs in terms of record keeping, volume of business, access to other sources of funding, sales value, and net Assets. etc. Accordingly, the study recommended that awareness be created among SMEs on the existence and operations of venture capital as this could be one of the potent ways of boosting sustainable growth and stability of SMEs in particular and socio economic growth and development of the economy in general.