Venture capital and entrepreneurial development in Gauteng

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dc.contributor.advisorAbor, Joshuaen_ZA
dc.contributor.authorHamnca, Ephraim Mondeen_ZA
dc.date.accessioned2018-11-06T14:03:28Z
dc.date.available2018-11-06T14:03:28Z
dc.date.issued2014en_ZA
dc.description.abstractVenture capital as a source of finance and non-financial services has gained popularity among start-up and existing businesses worldwide in recent years. Venture capital has been synonymous with high technology start-ups in the United States and of late has emerged as a recognizable source of finance in South Africa. South Africa has a healthy VC industry and growing number of SMEs. The SMEs in the country however have a challenge when it comes to accessing financial resources for starting businesses and for expansion purposes despite the existence of VC companies. It would have been the popular belief that the emergence of VC companies in the country would have increased the alternatives to the financing sources for SMEs but this seems to not have been the case. The VC companies are still not popular among the small business sector and their services are still not accessible as well. The aim of the study was to explore the state of venture capital market in South Africa and find out how it can accelerate entrepreneurial development. The researcher selected VC companies who are associated to the South Africa Venture Capital and Private Equity Association (SAVCA) and SMEs based Johannesburg area to take part in the study. The target sample was 70 venture capital firms and 200 SMEs from the Johannesburg area. The response rate from the VC companies was 53% and it was 67% from SMEs. The results obtained from the study indicated that there was a need for VC companies to impart more information concerning their services to SMEs. The SMEs generally did not have much knowledge of venture capital, how and where ton access it hence the low accessibility of this finance source to South African SMEs. The empirical study revealed that only 17% of SMEs in the study had knowledge of VC financing and only 6% of the SMEs had approached VC companies in the past. It was also discovered that 85% of the VC companies believed that the conveyance of information relating to their services contributed to the challenges SMEs faced in accessing VC sector. Of the SMEs taking part in the study 45% strongly believed that the development of the VC sector will drive SME growth and survival in South Africa.en_ZA
dc.identifier.apacitationHamnca, E. M. (2014). <i>Venture capital and entrepreneurial development in Gauteng</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/29000en_ZA
dc.identifier.chicagocitationHamnca, Ephraim Monde. <i>"Venture capital and entrepreneurial development in Gauteng."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2014. http://hdl.handle.net/11427/29000en_ZA
dc.identifier.citationHamnca, E. 2014. Venture capital and entrepreneurial development in Gauteng. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Hamnca, Ephraim Monde AB - Venture capital as a source of finance and non-financial services has gained popularity among start-up and existing businesses worldwide in recent years. Venture capital has been synonymous with high technology start-ups in the United States and of late has emerged as a recognizable source of finance in South Africa. South Africa has a healthy VC industry and growing number of SMEs. The SMEs in the country however have a challenge when it comes to accessing financial resources for starting businesses and for expansion purposes despite the existence of VC companies. It would have been the popular belief that the emergence of VC companies in the country would have increased the alternatives to the financing sources for SMEs but this seems to not have been the case. The VC companies are still not popular among the small business sector and their services are still not accessible as well. The aim of the study was to explore the state of venture capital market in South Africa and find out how it can accelerate entrepreneurial development. The researcher selected VC companies who are associated to the South Africa Venture Capital and Private Equity Association (SAVCA) and SMEs based Johannesburg area to take part in the study. The target sample was 70 venture capital firms and 200 SMEs from the Johannesburg area. The response rate from the VC companies was 53% and it was 67% from SMEs. The results obtained from the study indicated that there was a need for VC companies to impart more information concerning their services to SMEs. The SMEs generally did not have much knowledge of venture capital, how and where ton access it hence the low accessibility of this finance source to South African SMEs. The empirical study revealed that only 17% of SMEs in the study had knowledge of VC financing and only 6% of the SMEs had approached VC companies in the past. It was also discovered that 85% of the VC companies believed that the conveyance of information relating to their services contributed to the challenges SMEs faced in accessing VC sector. Of the SMEs taking part in the study 45% strongly believed that the development of the VC sector will drive SME growth and survival in South Africa. DA - 2014 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2014 T1 - Venture capital and entrepreneurial development in Gauteng TI - Venture capital and entrepreneurial development in Gauteng UR - http://hdl.handle.net/11427/29000 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29000
dc.identifier.vancouvercitationHamnca EM. Venture capital and entrepreneurial development in Gauteng. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2014 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29000en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherDevelopment Financeen_ZA
dc.titleVenture capital and entrepreneurial development in Gautengen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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