Maragia, Dancan Sagwe2025-07-252025-07-252025-04https://ir-library.ku.ac.ke/handle/123456789/30841A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Degree in Master of Business Administration (Finance Option) Kenyatta University, April 2025 Supervisor: 1.James GatauwaThe growth of the venture capital business globally has encouraged innovation and entrepreneurship, which has sparked the creation of wealth and jobs in several nations. In addition to financial support, venture capitalists offer the financed companies various non-financial services that add value, in form of different managerial support. By fostering wealth creation, economic growth, and job creation in their respective economies, SMEs become central in socioeconomic development. Despite their dominance and significance in developing nations like Kenya, these SMEs still have limited and fragmented access to sustainable finance that is necessary for their survival and growth. Because of their small size, constrained resources, perceived risk, and opaque business practices, SMEs have trouble getting access to financing. Many SMEs would close down, there would be an increase in job losses, and Kenya's GDP will decrease if this issue is not resolved. The study's main goal was to find out how venture capital affects small and medium-sized businesses' ability to expand financially in Kenya. In particular, this research examined the impact of venture capitalist control, managerial assistance, investment, and financing model on the financial growth of small and SMEs. The theories that underpinned the study were the financial liberalization theory, agency theory, social network theory and the pecking order theory. Both a descriptive research design and quantitative research methods were applied. The target population for the analysis consisted of 139 SMEs that have received venture capital funding. The study employed a census survey, wherein secondary data collected using data schedules supplemented primary data acquired via structured questions. The research variables were modeled using multiple regression analysis. The following diagnostic tests were used: multicollinearity, autocorrelation, heteroscedasticity, linearity, and normalcy. The Statistical package for social sciences was used to evaluate the data through descriptive statistics. Forms such as tables, graphs, and charts were used to visually portray the evaluated data. This study adhered to ethical guidelines. Results indicated that type of venture capital investment had a positive and significant effect on SMEs’ financial growth (β=0.167, P=0.034); venture capital managerial support had a positive and significant effect on SMEs’ financial growth (β=0.106, P=0.044), and venture capital financing model has a positive and significant effect on SMEs’ financial growth (β=0.133, P=0.003). SMEs' financial growth was positively, but not significantly, impacted by venture capital control (β =0.101, P =0.099). The study concluded that venture capital components except venture capital control contribute significantly to SMEs’ financial growth. The study recommended that entrepreneurs should consider a diverse syndicate of venture capitalists. The study also recommended that entrepreneurs should take advantage of venture capital managerial support. The study further recommended that entrepreneurs should review their venture capital financing model to achieve higher financial growth. In addition, the study recommended that entrepreneurs should review the venture capitalists’ level of control in the businessenThesis