Venture capital as a form of development acceleration and increase of market share and company's profitability in Ghana (PDF)

Doctoral Thesis / Dissertation from the year 2018 in the subject Economics - Finance, grade: 4.00, , language: English, abstract: This study focuses on 2006-2016 and aims at assessing the contribution of the venture capital trust fund on the operation of the beneficiary SMEs in the area of financial management, corporate governance, profitability and market shares. Using purposive sampling method, all the 27 SMEs benefiting from the Venture Capital Trust Fund were interviewed to appreciate the issues surrounding the use of venture capital for effective recommendation. The agro processing, real estate, health care and hospitality sector administered 11,11% each of the questionnaires, the education sector administered the highest questionnaires representing 22,22%,pharmaceutical manufacturing, manufacturing and financial sector administered 7,41%, Beverage Manufacturing and Industrial Consumables & Services administered 3,70% each.

SMEs are the bane of every country especially Ghana. They are major contributor to employment, wealth creation, poverty reduction, taxation, Gross Domestic Product, foreign exchange earnings and development and innovation of new business ideas. However, SMEs are saddled with financial constraints, poor corporate governance and financial management, limited market share and encounter losses in business operation. The SMEs also lacks collateral securities to acquire loan from financial institutions to employ the needed human resource and equipment for startup capital and growth. Those that had the collateral securities and acquire the loans are faced with high interest rate which increased their cost of business hence low return for expansion.