Chapter One — 1.1 Background to the Study

In recent years, Venture Capital Funding has emerged as a critical factor shaping venture performance of small and medium enterprises (smes) across organizations operating in and around Selected Deposit Money Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how venture capital funding relates to venture performance of small and medium enterprises (smes) has become an important area of both scholarly and practical concern.

Within the context of Selected Deposit Money Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of venture capital funding on venture performance of small and medium enterprises (smes), making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on venture capital funding, there remains limited consensus on the precise nature of its relationship with venture performance of small and medium enterprises (smes), particularly within Selected Deposit Money Banks in Nigeria. Many organizations continue to make decisions about venture capital funding without a clear, evidence-based understanding of how those decisions ultimately affect venture performance of small and medium enterprises (smes). This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Venture Capital Funding on venture performance of small and medium enterprises (smes) in Selected Deposit Money Banks in Nigeria.
2. To assess the extent to which venture capital funding influences venture performance of small and medium enterprises (smes) within the study area.
3. To identify the challenges associated with venture capital funding in relation to venture performance of small and medium enterprises (smes).
4. To recommend strategies for optimizing venture capital funding in order to improve venture performance of small and medium enterprises (smes).

1.4 Research Questions

1. What is the effect of venture capital funding on venture performance of small and medium enterprises (smes) in Selected Deposit Money Banks in Nigeria?
2. To what extent does venture capital funding influence venture performance of small and medium enterprises (smes) within the study area?
3. What challenges are associated with venture capital funding in relation to venture performance of small and medium enterprises (smes)?
4. What strategies can be adopted to optimize venture capital funding in order to improve venture performance of small and medium enterprises (smes)?

1.5 Significance of the Study

Beyond its academic contribution to the field of entrepreneurship, this study has practical value for management teams within Selected Deposit Money Banks in Nigeria seeking to understand how venture capital funding translates into measurable outcomes around venture performance of small and medium enterprises (smes). It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this PhD study confines itself to Selected Deposit Money Banks in Nigeria, focusing specifically on how venture capital funding relates to venture performance of small and medium enterprises (smes) within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.