The Impact of Venture Capital on the Growth of Small- and Medium-Sized Enterprises in Agriculture

Du, Juntao; Cai, Zheng-Qun

doi:10.1155/2020/2328171

Cited by 8 publications

(7 citation statements)

References 17 publications

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“…Accordingly, we can confirm that increasing the VC supply to start-ups firms contributes to profitability growth. These results are consistent with prior literature, for instance, Biney (2018), Kato and Tsoka (2020) and Du and Cai (2020).…”

Section: Profit Analysis Of Vc-financed and Non-vc-financed Enterprisessupporting

confidence: 93%

“…The capacity of an enterprise to generate sufficient profits defines its financial stability to primarily enlarge the value of invested capital to meet its financial obligation as a going concern. The profitability approach has been extensively used as a popular and dependable approach, if compared to other methods (Myskova & Hajek, 2017;Du & Cai, 2020), since fund managers frequently search for firms that have previously demonstrated growth potential.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

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Empirical examination of relationship between venture capital financing and profitability of portfolio companies in Uganda

Kato

Germinah

2022

J Innov Entrep

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In recent times, venture capital (VC) financing has evolved as an alternative feasible funding model for young innovative companies. Existing studies focus on whether VC enhances profitability. While helpful, this body of work does not address a critical question: whether VC firms are more profitable than non-VC firms. The co-existence of both VC and non VC firms in Africa provides an opportunity to address this question. Accordingly, this paper sought to extend the understanding of the relationship between VC financing and the profitability of portfolio companies in Uganda, a rapidly growing VC market. We utilised a mixed methods approach, which involved quantitative data collected from 68 key VC stakeholders, and qualitative data collected from 16 semi-structured face-to-face interviews. The results confirm the superior performance of VC-financed enterprises when compared to non-VC-financed enterprises. The study makes a vital contribution by offering a diversified framework for enterprise success. The framework will assist VC firms in evaluating and customising funding programmes that can propel early-stage firms’ success in Uganda, and in similar emerging economies. Secondly, our results contribute to extant knowledge about recent developments in Uganda’s VC industry and how it influences the profitability trends of SMEs, also in similar emerging economies.

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Section: Profit Analysis Of Vc-financed and Non-vc-financed Enterprisessupporting

confidence: 93%

Section: Empirical Results and Discussionmentioning

confidence: 99%

Empirical examination of relationship between venture capital financing and profitability of portfolio companies in Uganda

Kato

Germinah

2022

J Innov Entrep

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“…Many countries have difficulty facing COVID-19 pandemic, which affects the economic sector, including small and medium enterprises (SMEs). SMEs are considered to possess potential innovation capabilities and can create new market opportunities [11]. Small businesses, in particular, tend to excel in adaptability and flexibility [12].…”

Section: Resultsmentioning

confidence: 99%

“…The characteristics of SMEs are different, so not all can survive. Generally, most SMEs are difficult to get enough loans from the bank [11], Including SMEs in China that have been supported by the government, but access to finance is one of the biggest challenges [13]. For that, it is a necessary strategy to maintain SMEs when and after the pandemic.…”

Section: Resultsmentioning

confidence: 99%

Rethinking of Strategy Defending Small and Medium-Sized Enterprises (SMEs) During COVID-19 Pandemic

Kornelius¹,

Buntuang²,

Bidin³

2020

Proceedings of the International Conference on Community Development (ICCD 2020)

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COVID-19 is an unusual scary virus and surprisingly affects the world economy. The condition demands that various countries in the world apply containment policies combined with various public health measures and make economic activities paralyzed, especially for Small and Medium-Sized Enterprises (SMEs). SMEs are considered to have potential innovation capabilities and can create new market opportunities, so governments should consider measures to relieve the burden of SMEs to stay afloat and keep growing during a pandemic. The purpose of this paper is to rethink the strategy of maintaining SMEs during a pandemic in the hopes that if such a situation occurs in the future then this strategy can be applied. This paper covers strategies from various countries that successfully retain SMEs during a pandemic. Qualitative methods with secondary data sources obtained from official government websites, media, economic bulletins, and international journals related to SMEs. This paper is expected to contribute to various countries to maintain SMEs, especially in countries whose economic growth has paralyzed the impact of the pandemic.

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“…Business operators must possess the requisite knowledge, skills, and abilities to effectively evaluate investment opportunities using appropriate appraisal techniques before investing their scarce funds. Scholars have asserted that a significant number of enterprises in developing nations lack the KSAs to appraise investment projects, and this failure could explain the counterproductive investment decisions that strained performance (Agbude, 2013;Junjuan and Zhengqun, 2020). Interestingly, one can argue that these investment appraisal practises may help SME operators become acquainted with the feasibility of available innovative projects and determine the best alternative course of innovative action to harmonise with the strategic needs of the enterprise.…”

Section: Investment Appraisal Practices and Innovative Performancesmentioning

confidence: 99%

Financial Management Practices and Innovative Performances of the Nigerian SMEs Sub-Sector: A Conceptual Approach

Okoye

Afrifa

Afolabi

2023

IJF

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Purpose: The role of small and medium-scale enterprises (SMEs) in economies all over the world is well established as a vital propeller of economic growth and other macroeconomic balances. Thus, the growth of SMEs has been at the center of scholarly debates since the last decade, with many factors including financial management practices as well as innovative practices, contributing to the extensive study of the performances of SMEs. However, with unpopular arguments in literature in the context of financial management practices and SMEs’ innovative performances, this study attempts to explore how prudent financial management practices could inform SMES’ innovative performances. Methodology: Being a conceptual paper, the methodology adopted is explorative in nature, where literature was extensively explored in line with the research aim and specific study objectives. Findings: The outcome of the explorative literature study revealed that financial management practices are important determinants of SMEs’ innovative performances. This shows that working capital management, investment appraisal and analysis, financial information system management, financing and capital structure management are practices that SMEs must incorporate to foresee and take advantage of innovative opportunities that will lead to innovative performances Unique Contribution to Theory, Policy and Practice: This conceptual paper adds fresh arguments to the existing literature on financial management practices, innovation, and SMEs' performances by hypothesizing a positive relationship between different financial management practices (particularly, working capital management, investment assessment practices, financing and capital structure management, as well as financial information system management) and the innovative performances of SMEs. Thereby, we are ushering in a gateway for new empirical studies on the phenomenon of financial management practices and innovative performances of SMEs. In addition, SMEs’ owners and manager can leverage on the implications of this study to inform practical decisions on various financial management practices.

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The Impact of Venture Capital on the Growth of Small- and Medium-Sized Enterprises in Agriculture

Cited by 8 publications

References 17 publications

Empirical examination of relationship between venture capital financing and profitability of portfolio companies in Uganda

Empirical examination of relationship between venture capital financing and profitability of portfolio companies in Uganda

Rethinking of Strategy Defending Small and Medium-Sized Enterprises (SMEs) During COVID-19 Pandemic

Financial Management Practices and Innovative Performances of the Nigerian SMEs Sub-Sector: A Conceptual Approach

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