AN ANALYSIS AND STUDY OF VENTURE CAPITAL APPLICATION IN TURKEY AND NIGERIA

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.