Empowering Small and Medium Enterprises (Smes): The Contribution of Venture Capitalists and Angel Investors in Akure's Entrepreneurial Ecosystem

Abstract

Small and medium-sized businesses (SMEs) are essential for creating jobs and economic growth, but they frequently struggle to get funding and strategic support. In addition to money, venture capitalists and angel investors provide networks, business knowledge, and mentorship. This study examines how venture capitalists and angel investors support the growth and empowerment of small and medium-sized businesses (SMEs) in Akure, Nigeria's entrepreneurial ecosystem. Given how important SMEs are to innovation, job creation, and economic diversification, it is essential to comprehend the sources and effects of outside finance. The study investigates the ways in which venture capital and angel investments impact business growth, sustainability, and strategic capacity through structured interviews with SME owners. The results show that these investors frequently offer mentorship, industry networks, and strategic advice in addition to financial support, all of which greatly improve SME performance. The best possible impact is nevertheless hampered by issues including restricted investor access, SMEs' lack of investment readiness, and regulatory restrictions. In order to enhance the collaboration between investors and the SME sector in Akure's expanding entrepreneurial landscape, the study ends by suggesting policy changes, increased awareness of investments, and capacity-building programs.