Chapter One — 1.1 Background to the Study

Venture Capital Funding has increasingly attracted the attention of researchers, regulators, and practitioners concerned with business survival rate of small and medium enterprises (smes). 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.

Within the context of Ogun State, 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 business survival rate of small and medium enterprises (smes), making a context-specific inquiry both timely and necessary.

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 survival rate of small and medium enterprises (smes) 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 survival rate of small and medium enterprises (smes) — 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 survival rate of small and medium enterprises (smes) in Ogun State.
2. To assess the extent to which venture capital funding influences business survival rate of small and medium enterprises (smes) within the study area.
3. To identify the challenges associated with venture capital funding in relation to business survival rate of small and medium enterprises (smes).
4. To recommend strategies for optimizing venture capital funding in order to improve business survival rate of small and medium enterprises (smes).

1.4 Research Questions

1. What is the effect of venture capital funding on business survival rate of small and medium enterprises (smes) in Ogun State?
2. To what extent does venture capital funding influence business survival rate of small and medium enterprises (smes) within the study area?
3. What challenges are associated with venture capital funding in relation to business survival rate of small and medium enterprises (smes)?
4. What strategies can be adopted to optimize venture capital funding in order to improve business survival rate 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 Ogun State seeking to understand how venture capital funding translates into measurable outcomes around business survival rate 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 BSc study confines itself to Ogun State, focusing specifically on how venture capital funding relates to business survival rate 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.