scholarly journals Effect of Venture Capital Financing on Investment in Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 45-60
Author(s):  
Kevin Wanjala ◽  
Valerie Kizito
Keyword(s):  
Venture Capital ◽  
Small And Medium Enterprises ◽  
Gdp Per Capita ◽  
Positive Correlation ◽  
Aggregate Investment ◽  
Capital Financing ◽  
Per Capita ◽  
Medium Enterprises ◽  
Positive Effect ◽  
Number Of Firms

Purpose: The objective of this paper is to determine the effect of venture capital financing on investment in Kenya. Methodology: To achieve the objective of the study, venture capital was disaggregated into two variables, namely, the number of firms financed and the total amount of financing. Other variables, such as interest rate and GDP per capita were also included in the analysis to act as control variables. The study used 10 years of data spanning from 2009 to 2018. A regression analysis was done in order to analyze the data. Results: The study established that there is a positive correlation between the number of firms financed and the aggregate investment in Kenya. The study observed that the total amount of financing has a positive correlation with aggregate investment. Implications: The study concludes that venture capital financing has a positive effect on aggregate investment levels in Kenya. The study recommends that the Kenyan government should come up with ways of financing small and medium enterprises, which will boost their productive capacities leading to more investment in the country and more generation of income.

scholarly journals Export Contribution of Micro, Small and Medium Enterprises to GDP Per capita in Indonesia

2021 ◽  
Vol 4 (3) ◽  
pp. p11
Author(s):  
Deddy Tri Harjanto ◽  
Cicih Ratnasih ◽  
Yolanda Yolanda
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Research Method ◽  
Inverse Relationship ◽  
Small And Medium Enterprises ◽  
Gdp Per Capita ◽  
Negative Effect ◽  
Per Capita ◽  
The Exchange Rate ◽  
Medium Enterprises

This study will determine how much the influence of the exchange rate, the number of MSMEs, investment, credit, and inflation on MSME exports nationally, and how they contribute to GDP per capita. The research method uses multiple regression with data transformation ln. The results of the study consist of model 1, the exchange rate factor, the number of MSMEs, investment, credit, and inflation are variables that influence increasing the number of product exports produced from the MSME sector. In the second model, the contribution of MSME exports to GDP per capita. The results showed that of all significant positive variables and one significant negative variable. The investment required in Indonesia, whose number continues to increase yearly, affects the high number of products exports from the MSME sector. For this reason, investment factors must continue to be considered to increase MSME exports. In contrast, the contribution of the inflation variable has a significant negative effect, which is an inverse relationship to MSME exports. It is predicted that if inflation is low, MSME exports will increase, and vice versa if inflation is high, MSME exports will decline. Furthermore, model 2 shows that MSME exports significantly contribute to gross domestic product per capita. In this case, the ups and downs of Micro, Small, and Medium Enterprises' exports need special attention.

scholarly journals Venture Capital Financing on MSMEs in PT Sarana Ventura Yogyakarta: A Maslahah Perspective

2019 ◽  
Vol 4 (2) ◽  
pp. 101
Author(s):  
Rachmat Hidajat
Keyword(s):  
Data Collection ◽  
Venture Capital ◽  
Small And Medium Enterprises ◽  
Field Research ◽  
Small Scale ◽  
Distribution Process ◽  
Collection Data ◽  
Capital Financing ◽  
Medium Enterprises ◽  
Method Approach

Purpose: This study aimed to analyze and explain the implementation of venture capital financing at PT. Sarana Ventura on MSMEs in terms of maslahah aspectDesign/Method/Approach: This was descriptive qualitative field research. The subjects were the leaders, the divisions of VCO & investment, legal, and agents of MSMEs at PT. Sarana Ventura in Yogyakarta. The data collection used observation, interview, and documentation techniques. The data analysis consisted of four stages, namely, data collection, data reduction, data display, and conclusion drawing/verification.Findings: The results showed that first, the distribution process of financing conducted by PT. Sarana Ventura is in the form of equity without charging any interest payment but applying the concept of revenue sharing to avoid usury. Second, the distribution process of financing to MSMEs is free from gharar by implementing the principle of the contractual agreement as well as a consensual principle in agreeing. Third, however, the capital distribution to the actors of micro, small and medium enterprises has not yet met the principle of justice because the firm is only willing to provide venture capital to medium scale enterprises which have been running and developing, not for new small scale enterprises (startup).Originality/Values: The main contribution of this study is expected to make venture capital companies more open and competitive in the future in advancing MSMEs.

scholarly journals The Legal Reform of Venture Capital Financing Institutions As a Financing Alternative for Micro Small and Medium Enterprises

FIAT JUSTISIA ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 13-24
Author(s):  
Tri Setiady
Keyword(s):  
Venture Capital ◽  
Small And Medium Enterprises ◽  
National Development ◽  
Legal Reform ◽  
Bank Loans ◽  
Business Partner ◽  
Usual Practice ◽  
Capital Financing ◽  
Medium Enterprises

So far, the role of venture capital has not been optimal, or it can be said that while it is not working. In practice, in Indonesia, venture capital companies carry out their business like banking. That until now, in general, venture capital companies practice more as credit providers as the usual practice of providing bank loans. All requirements and conditions requested for a business partner company (actually: a debtor) are like a bank in giving credit. Therefore a legal reform of venture capital financing institutions is needed to optimize financing for micro, small, and medium enterprises to realize national development.

scholarly journals Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia

2021 ◽  
Vol 14 (7) ◽  
pp. 286
Author(s):  
Betgilu Oshora ◽  
Goshu Desalegn ◽  
Eva Gorgenyi-Hegyes ◽  
Maria Fekete-Farkas ◽  
Zoltan Zeman
Keyword(s):  
Small And Medium Enterprises ◽  
Multiple Linear Regression Model ◽  
Financial Inclusion ◽  
Research Approach ◽  
Supply Side ◽  
Access To Finance ◽  
Secondary Sources ◽  
Medium Enterprises ◽  
Supply Side Factors ◽  
Positive Effect

The study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Ethiopia. The study uses an explanatory research design and a mixed research approach with both primary and secondary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, and collateral requirements have a positive effect on the firm’s access to finance. On the other hand, institutional framework factors, and the costs of borrowing negatively affect the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial service to SMEs.

Effect of Product Turnover on Company Performance of SMEs

2021 ◽  
Vol 1 (3) ◽  
pp. 115-119
Author(s):  
Agus Sobar ◽  
Asep Deni ◽  
Riki Riswandi ◽  
Dendi Zainuddin Hamidi ◽  
Indra Permadi
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Measurement Model ◽  
Industrial Sector ◽  
Company Performance ◽  
Simple Linear Regression ◽  
Medium Enterprises ◽  
Positive Effect

Research related to the effect of product turnover on the performance of companies in the industrial sector is still needed to do research and study in depth. This is needed because the developed sector, especially related to product rotation, has an important role in advancing the sustainability of the company. The research methodology in this research is descriptive quantitative using simple linear regression analysis and using SPSS v 23 and Amos v 23 software as a calculation tool through a measurement model using simple Linear Regression at 87 MSMEs in Sukabumi City. The results of this study indicate a positive effect of product turnover on the performance of Small and Medium Enterprises.

scholarly journals Pengaruh Persepsi, Tingkat Pendidikan, dan Sosialisasi Terhadap Penerapan SAK EMKM Pada UMKM Wilayah Kota Surabaya

2018 ◽  
Vol 12 (2) ◽  
pp. 112
Author(s):  
Galuh Artika Febriyanti ◽  
Agung Sri Wardhani
Keyword(s):  
Sampling Method ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Financial Accounting ◽  
Primary Data ◽  
Negative Effect ◽  
Convenience Sampling ◽  
Medium Enterprises ◽  
Cash Basis ◽  
Positive Effect

The perpetrators of MSMEs generally do not use the standards applicable in the preparation of financial statements. MSME financial statements often use cash basis taken from daily cash mutation sources. The Indonesian Institute of Accountants seeks to contribute to overcome the constraints of MSMEs in the preparation of financial statements by issuing the Financial Accounting Standards of Micro Small and Medium Enterprises (SAK EMKM) and effective from 1 January 2018. SAK EMKM is simple to be implemented easily by MSMEs. The Financial Statements according to SAK EMKM are prepared on the accrual basis. The research took 50. MSMEs in Surabaya using convenience sampling method. The data used are primary data obtained through questionnaires. This study aims to finding out the hypothesis that the perception of MSMEs in Surabaya against the application of EMKM IFRS had an effect on the application of EMKM IFRSs, testing the education level hypothesis of MSMEs in Surabaya had an effect on the application of EMKM IFRSs, and tested the hypothesis of SAK EMKM dissemination in Surabaya. application of SAK EMKM. The results showed that partially the perception of MSMEs entrepreneurs has a positive effect on implementation SAK EMKM while the level of education and sozialization has a negative effect.

scholarly journals The Correlation between Toll Road Development and the Improvement of Local Economy (Case Study: The Soroja Toll Road)

2020 ◽  
Vol 3 (1) ◽  
pp. 26-36 ◽  
Author(s):  
Lisna Rahayu ◽  
Desiree Marlyn Kipuw ◽  
Keyword(s):  
Gross Domestic Product ◽  
Small And Medium Enterprises ◽  
Local Economy ◽  
Positive Correlation ◽  
Toll Road ◽  
Road Development ◽  
Surrounding Areas ◽  
Medium Enterprises ◽  
Wheeled Vehicles

Most studies assume that road development will improve the economy in the region, as reflected by an increase in Gross Domestic Product (GDP). However, GDP is macro in nature and tends to be biased if we ask who benefits from its increase. To identify whether road development has a positive correlation with the improvement of local economy, hence this study was conducted in a micro context by taking the development of the Soroja Toll Road in Indonesia as a case study. With a length of 10.57 km, connecting Bandung Regency and Bandung City, the newly constructed Soroja Toll Road has a strategic function in supporting activities in the Bandung Metropolitan Area (BMA) and is predicted giving implication on increasing Small and Medium Enterprises (SMEs) profit surrounding its corridor. However, a toll road cannot entirely be seen as a public goods, because not all people have access to this type of infrastructure. Only the users of four-wheeled vehicles and those who can afford to pay the toll charge can access the toll road. This study was aimed at identifying the correlation between the developments of the Soroja Toll Road with the improvement of local economy (SMEs) in its surrounding areas. Based on the analysis result, this study indicates that the presence of the Soroja Toll Road had a bigger positive correlation with the increased profit of medium-sized industries than small-sized industries due to their ability to capture a broader market.

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