Resumo

KATO, Ahmed I.  e  GERMINAH, Chiloane Evelyn. Government's impact on the venture capital market and small-medium enterprises' survival and growth in East Africa, evidence from Uganda. JCMAN [online]. 2021, vol.18, n.2, pp.114-139. ISSN 1815-7440.  http://dx.doi.org/10.35683/jcm20125.123.

PURPOSE OF THE STUDY: In recent years, the government's involvement in the venture capital (VC) market has been hailed for encouraging the survival and growth of small and medium enterprises (SMEs) primarily in developed economies. In this paper, the impact of the government's involvement in the VC market on the survival and growth of startup entrepreneurial firms in Uganda is exploredDESIGN/METHODOLOGY/APPROACH: A mixed-method research design to hand-collect primary data from 90 VC experts was employed. The quantitative data were evaluated using a multiple regression model and other inferential tests; the results were generated using Statistical Package for the Social Sciences (SPSSFINDINGS: This paper discloses that 63 percent of the respondents confirmed the positive impact of government's involvement in enhancing the development of early-stage firms. Considering these results, the higher percentage suggests commendable success and the growth of enterprises. This study confirms that VC financing is a precursor for the quicker growth of early-stage enterprises. The paper further discloses that Uganda's VC market is underdeveloped and without clear VC policiesRECOMMENDATIONS/VALUE: Drawing from our findings and earlier literature works, Uganda's VC policies are still in the design stage and not well regulated when compared to Kenya, Nigeria and South Africa. These countries established defined PE and VC association which provide insights in the VC market. As a result, emerging economies including Uganda ought to replicate US government VC funding model to upsurge VC investment supply into the region thereby bridging the equity financing gap which inhibits SMEs' survival and growth especially in the developing countriesMANAGERIAL IMPLICATIONS: The government lacks defined tracking of VC deals and cannot offer legal support to the VC fundraising drive. On this basis, the Uganda government should make a deliberate effort to create a supportive policy to inspire foreign VC investors into the country who are experienced in nurturing SMEs growth until maturity stageJEL CLASSIFICATION: G2: G22:28

Palavras-chave : Government venture capital; VC co-investment; VC fund managers; Venture capital and SMEs' growth; Uganda.

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