Abstract:
This study had investigated the connection between venture capital and small and
medium scale enterprises (SMEs) using SMEs in Lagos, Nigeria. SMEs has played a
significant role in the developed countries of the world where the developing and
under-developed nations are aiming to emulate to spur the economic growth and
development. It was on this note that this study conducted the relationship between
the venture capital and SMEs in one of the developing nations (Nigeria). The study
subjected the hypotheses at 5% level of significance where frequency analysis,
regression analysis and correlation analysis were used as the estimation techniques.
The findings revealed that the null hypothesis fails to be rejected that access to
finance is a major hinderance to SMEs in Nigeria, that is, access to finance is one of
the major hinderance to SMEs performance in Nigeria. Also, the null hypothesis is
accepted because the p-value is less than 1% and 5% significance level that is,
venture capital has no significant impact on SMEs in Nigeria at the startup stage. It
was concluded that that access to finance has a positive and significant impact on
SMEs, venture capital reveals a positive and significant on SMEs, venture capital
trust is positive but not significant on SMEs.
