Effect of venture capital financing on growth of small and medium enterprizes in Northern Division, Mbale City, Uganda

Abstract

Small and Medium Enterprises (SMES) are vital drivers of economic development, fostering employment creation, income generation and innovation. In Uganda, SMEs constitute a significant proportion of the formal and informal economy but their growth is often constrained by limited access to finance. Traditional finance method such as bank loans, are frequently inaccessible to SMEs due to stringent collateral requirements and high interest rates, creating a financing gap that inhibits business expansion and sustainability.