Screening phase rejections of venture capital seekers in South Africa / G.C. van Eeden

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dc.contributor.author Van Eeden, Gert Christiaan
dc.date.accessioned 2009-02-11T13:48:41Z
dc.date.available 2009-02-11T13:48:41Z
dc.date.issued 2004
dc.identifier.uri http://hdl.handle.net/10394/564
dc.description Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2005.
dc.description.abstract A lack of capital is one of the factors that inhibit business development in the developing world, including South Africa. This is especially true for a prospective business where the owner does not have security to secure a bank loan. A financing option that is available to entrepreneurs is venture capital. However, venture capitalists reject 88 percent of all new applications for venture capital in the initial screening phase. This study examined the reasons for the high rejection rate of applications for venture capital in South Africa. Non-compliance with the internal fund preferences of venture capitalist firms was identified as one of the biggest reasons for the rejection of applications for venture capital. Other factors were also investigated with specific reference to the Timmons Model of the entrepreneurial process. It was determined that factors relating to team, opportunity, and resources are also important in the initial screening phase, but they are not as important as internal fund preferences. Uniquely South African factors were also investigated and it was determined that factors relating to black economic empowerment and corporate citizenship play a relatively unimportant role in the approval of new ventures by venture capitalists. Based on the above-mentioned study, a Framework for venture capital seekers was developed. This framework is aimed at increasing the probability of applications for venture capital passing the initial screening phase.
dc.publisher North-West University
dc.title Screening phase rejections of venture capital seekers in South Africa / G.C. van Eeden en
dc.type Thesis en
dc.description.thesistype Masters

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    This collection contains the original digitized versions of research conducted at the North-West University (Potchefstroom Campus)

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