Impact of Venture Capital to the Development of Zanzibar SMEs.
Venture capital has a significant impact on Small and Medium Enterprises (SMEs). In Zanzibar Isles, small businesses have been and are the stepping stone of industrialization in Isles. The purpose of this study was to find out the impact of venture capital on growth of SMEs in Zanzibar. The lack of finance has been cited as a major contributor to SMEs failure in Zanzibar Urban West Region. Despite the lack of Venture Capital Organization in Zanzibar Urban West Region, Venture capital is the best source of business finance. The methodology used interview guide and the data was collected, coded, quantified and analyzed quantitative and qualitatively. Quantitative data was analysed with the use of statistical package for social science (SPSS). The findings in this study revealed that venture capital has an impact on growth of SMEs. The study has demonstrated that use of venture capital can improve SMEs and hence strengthen Zanzibar Economy. The study concluded that countries that use venture capital experience improved economic growth and thus Zanzibar should follow that experience by promoting the establishments of Venture Capital Organizations, and also SME's of Zanzibar should be encouraged to use this form of finance to achieve their economic growth.
Networked Digital Library of Theses and Dissertations