Authors: Kissi Ernest; Anita Asamoah-Duodu; Matthew Kwaw Somiah
Addresses: Department of Building Technology, College of Art and Built Environment, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana ' Department of Building Technology, Kumasi Polytechnic, P.O. Box 854, Kumasi, Ghana ' Department of Building Technology, Takoradi Polytechnic, P.O. Box 256, Takoradi, Ghana
Abstract: The aim of the paper was to identify factors that influence venture capital financing in real estate development in Ghana. In achieving this, a quantitative research technique was untilised. Hence, based on a thorough literature review a questionnaire was designed and administered to members of Ghana Real Estate Developers Association (GREDA). Relative Importance Index (RII) was use determined the level of significant of identified factors. The results of the survey indicated that impact of high interest, collateral security, lack of promoting private sector financial innovations, poor documentation or lack of record keeping, access to land and ineffective legal environment were the main significant factors that influence venture capital financing in real estate development in Ghana among others. The findings suggested critical examination of the financing approach and raises useful factors to guide local firms that enters into venture capital financing.
Keywords: venture capital financing; real estate development; challenges; Ghana; interest rates; collateral security; financial innovation; documentation; record keeping; land access; legal effectiveness; law.
African Journal of Economic and Sustainable Development, 2016 Vol.5 No.4, pp.355 - 364
Received: 12 Mar 2015
Accepted: 04 Apr 2016
Published online: 28 Sep 2016 *