Financing an entrepreneurial venture obtaining capital for a start-up venture

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Perceiving an opportunity and gaining command over the resources and management to establish a venture are not the sole functions of entrepreneurship. Raising capital to finance the start-up venture must subsequently be considered an important entrepreneurial function. A good and solid foundation of an initial investment may initiate growth. The entrepreneur must therefore begin the search of venture capital for the growth stage. I kind of financing available for growth purposes vary. The venture capital investors may primarily provide equity, and/or, debt financing but between these two extremes lays a mixture of equity and debt capital finances. In Ghana most entrepreneurial capabilities are concentrated in internal trade- importing road transport, building and construction, non-financial services, commercial agriculture and industry. Despite the active growing entrepreneurial effort by Ghanaians in these areas, there is no doubt, that, the vast majority of large scale ventures have been the preserve of expatriate or government agencies. Both macro - and micro-economic policies have been embarked upon to develop the private sector of the economy to encourage active private participation as an engine of growth of the economy. The socioeconomic infrastructural networks are being improved country-wide. The free zone, export processing enclaves, the inland and free ports facilities are being given practical support and boost; state owned enterprises have been earmarked for divestiture to attracting the needed entrepreneurship and capital. These efforts are not yielding any significant impact in the economy because in Ghana’s market economy the entrepreneurship of the start-up ventures is greatly beset by a myriad of problems for the ventures to stagnate. However, the technological skills and the managerial potentialities of the Ghanaian entrepreneur are being nurtured by the government and non-governmental organisations and agencies but the constraints in obtaining capital to finance start-up ventures remain an obstacle to encourage growth and sustainability. It is therefore envisaged that what can actually propel the entrepreneurial process to accelerate the pace of venture growth besides the technical know-how and the managerial capabilities of the entrepreneurs to grasp the opportunities and utilise the chances to his advantage is the examination of how to obtain equity and, or, debt capital. The research work therefore focuses on the topic to enhance venture growth to accelerate the economic and industrialisation process in the economy.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of Postgraduate Diploma in Industrial Management, 1996