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The Ghana Venture Capital Trust Fund: A Comprehensive Analysis of Financial Health, Growth, and Sustainability from 2016 to 2022

DOI: 10.4236/ti.2024.153009, PP. 145-167

Keywords: Venture Capital Fund, Financial Viability, Sustainability, Investment, Economic Development

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Abstract:

The Ghana Venture Capital Trust Fund (VCTF), a government-sponsored initiative, is pivotal in providing patient capital to foster entrepreneurship and spur economic development, particularly in emerging markets where traditional funding avenues may be limited. This study aims to comprehensively assess the VCTF’s financial robustness, growth trajectory, and sustainability spanning seven years from 2016 to 2022. We scrutinize the fund’s financial health, investment strategies, and capacity to bolster the Ghanaian entrepreneurial ecosystem by examining critical financial metrics, growth indicators, and sustainability benchmarks. The analysis reveals nuanced insights into the VCTF’s financial performance over the study period. Despite encountering challenges such as negative net profit margins and subdued asset turnover ratios in previous years, the fund showcases resilience and sustainability, particularly evidenced by notable improvements in 2022. These findings affect the management, policymakers, and various stakeholders within the Ghanaian venture capital landscape, offering valuable insights to inform strategic decision-making and policy formulation.

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