Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between venture capital funding and job creation of youth entrepreneurs has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Nigeria where operating conditions differ markedly from more developed markets.

Nigeria 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

Despite a growing body of literature on venture capital funding, there remains limited consensus on the precise nature of its relationship with job creation of youth entrepreneurs, particularly within Nigeria. Many organizations continue to make decisions about venture capital funding without a clear, evidence-based understanding of how those decisions ultimately affect job creation of youth entrepreneurs. 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 job creation of youth entrepreneurs in Nigeria.
2. To assess the extent to which venture capital funding influences job creation of youth entrepreneurs within the study area.
3. To identify the challenges associated with venture capital funding in relation to job creation of youth entrepreneurs.
4. To recommend strategies for optimizing venture capital funding in order to improve job creation of youth entrepreneurs.

1.4 Research Questions

1. What is the effect of venture capital funding on job creation of youth entrepreneurs in Nigeria?
2. To what extent does venture capital funding influence job creation of youth entrepreneurs within the study area?
3. What challenges are associated with venture capital funding in relation to job creation of youth entrepreneurs?
4. What strategies can be adopted to optimize venture capital funding in order to improve job creation 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 job creation of youth entrepreneurs. For managers and practitioners within Nigeria, 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 job creation of youth entrepreneurs within the context of Nigeria. It reflects a clearly defined 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.