Title:
APPRENTICESHIP, VENTURE CAPITAL AND MENTORSHIP AS A MODEL OF FINANCING SMALL AND MEDIUM ENTERPRISES (SMES)

Authors:
Nwanna, Ifeanyi Onyenwe and Osakwe, Charity Ifunanya ,Nigeria

Abstract:
The paper examines apprenticeship, venture capital and mentorship as a model for financing SMEs in Nigeria. Small and Medium Enterprises constitutes greater percentage of businesses, employment and income in any country. To obtain Nigerians SMEs owners view on the use of Apprenticeship, Venture capital and Mentorship to finance their business, the study used Primary data source of data collection to collect data from SME business owners operating in Awka, Anambra state of Nigeria. Questionnaires were distributed to 183 respondents. The data obtained from them were analyzed using simple percentage method. The study found that apprenticeship influences the growth of SME through the settlement funds, business advice and assistance in credit purchase given to apprentice, that Venture capital investment dilutes ownership and control of SME and assists SMEs to access loan at a low interest rate and that Mentorship improves SMEs through coaching, supervision and training that helps them gain skill, mastery and expertise needed to run the SME. The study justifies the impact of apprenticeship and mentorship in the development of SMEs. The study therefore recommends that Government should empower and encourage professionals and Business owners or skilled workers to train the unskilled up-coming ones by giving them the kind of training that will help them become experts, gain mastery and be able to replicate their kind of business or skill, Government should introduce entrepreneurship training in all levels of education in the country and establish skill acquisition centers in every town in the country. Finally, that Government should support SMEs in raising capital by giving them low or interest free loans and business advice that will aid their survival