Chapter One — 1.1 Background to the Study

Venture Capital Funding has increasingly attracted the attention of researchers, regulators, and practitioners concerned with business growth of youth entrepreneurs. This growing interest reflects the recognition that venture capital funding does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Ogun State.

Ogun State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While venture capital funding is widely discussed in policy and industry circles, empirical evidence on its actual effect on business growth of youth entrepreneurs within Ogun State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to venture capital funding are helping or hindering business growth of youth entrepreneurs — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Venture Capital Funding on business growth of youth entrepreneurs in Ogun State.
2. To assess the extent to which venture capital funding influences business growth of youth entrepreneurs within the study area.
3. To identify the challenges associated with venture capital funding in relation to business growth of youth entrepreneurs.
4. To recommend strategies for optimizing venture capital funding in order to improve business growth of youth entrepreneurs.

1.4 Research Questions

1. What is the effect of venture capital funding on business growth of youth entrepreneurs in Ogun State?
2. To what extent does venture capital funding influence business growth of youth entrepreneurs within the study area?
3. What challenges are associated with venture capital funding in relation to business growth of youth entrepreneurs?
4. What strategies can be adopted to optimize venture capital funding in order to improve business growth of youth entrepreneurs?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around business growth of youth entrepreneurs. For managers and practitioners within Ogun State, the study provides practical insight into how venture capital funding can be better managed. Finally, it contributes to the academic literature on entrepreneurship by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Venture Capital Funding and its relationship with business growth of youth entrepreneurs within the context of Ogun State. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.