Browsing by Author "MOGIRE, EMILY KERUBO"

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    Assessment of awareness levels on venture capital financing among small and medium enterprises in Kumasi, Ghana
    (September 2015) MOGIRE, EMILY KERUBO
    Small and medium scale enterprises (SMEs) play a significant role in global economies but access to finance by SMEs is still a major challenge. Venture capital financing was introduced over a decade ago in Ghana as a source of financing SMEs, but its use is very limited. In developing countries, lack of awareness has been identified as one of the greatest barriers to effective implementation of venture capital financing on SMEs. This study sought to find out the level of awareness of SMEs regarding venture capital financing and how this awareness levels could be increased among SMEs in Kumasi, Ghana. A quantitative approach was used and the purpose of the research was mainly exploratory. The main strategy used to collect data was a survey using questionnaire involving 100 SMEs from the primary (30), secondary (30) and tertiary (40) sector. Findings show that only 31% were aware of venture capital financing; 23% in primary, 27% in secondary and 40% in the tertiary sector. Barriers reported to applying for this financing option were inadequate information (39%), bureaucracy and stringent conditions (21%), lack of portfolio diversity and location proximity (9%), fear of loss of control (6%) and having no current needs (35%). The main mediums used by SMEs to obtain information on venture capital financing were electronic media - internet (41%), print media i.e. books (38%) and newspapers/magazines (21%) and training seminars (17%). Advertising (63%), field visits (44%) and training seminars (27%) were identified by SMEs as means to increase awareness. In conclusion, awareness on venture capital financing among SMEs in Kumasi is low and the current awareness mediums used are inadequate and mismatch mediums SMEs in Kumasi use to obtain financing information. This study has developed a strategy with multiple and well-harmonized information pathways, which is recommended to support awareness-raising on venture capital financing among SMEs in Kumasi and in other similar settings.