IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 7 2018

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Venture Capital as Source of Business Finance: Evaluation of the Awareness Level of Small and Medium Scale Enterprises in Nigeria

Emerah .A. Apollos, Oyedele Oloruntoba Stephen, & Atunbi, Joshua Ademola

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Abstract

This study examined the awareness level of small and medium scale enterprises about venture capital as source of business finance in southwestern Nigeria. The population of study comprised all the 7474 SMEs in southwestern Nigeria that registered with Corporate Affairs Commission. A two-staged sampling technique was employed in selecting the sample size. In the first stage, purposive sampling was used to choose two states, namely Lagos (4535 SMEs) and Oyo (1394 SMEs) that had the largest percentage (79.3%) of registered SMEs in Southwestern Nigeria. In the second stage, Slovin’s formula was used to select 374 SMEs in the states using population proportionate to size. The awareness level of SMEs was obtained through the administration of structured questionnaire to SME’s operators. Data collected were analysed using descriptive tools such as percentages and mean as well as inferential statistical tools such as ANOVA. The result showed that 304 (84.2%) of the respondents have heard about venture capital while 57 (15.8%) have not heard about venture capital.

keywords:

Venture Capital, Business Finance, Awareness, Small and Medium Scale Enterprises,

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