Evaluation of the role played by venture capital in fostering SACCOs growth: the case of Kinondoni SACCOs in Dar es Salaam

Venture Capital Funds are appropriate mechanism for developing “ladder” to support SACCOs growth and prospects, and may offer a window of technology once implemented strategically. But the question comes on whether the established venture capital funds really aim at fostering SACCOs growth. The purpose of this research was to evaluate the role played by the Venture Capital Funds to SACCOs growth in Tanzania from 2005 to 2009. Trend analysis was conducted for the period 2005 to 2010 and this period the VC funds were offered to the SACCOs under study. Also the study used time series technique, which entails comparing the operational efficiency of a single firm. The study found out that, the Venture Capital funds enabled SACCOs to maximize S/holders wealth, increased own capital or equity, increased resource mobilization, increased assets value and capital invested, member’s size, outputs (varied loan products offered), and increased financial and operational efficiency of a SACCOs. The study recommend that, great effort should be made by the government to increase the level of Venture Capital activities participation in Tanzania to boost the level of access to finance for growth and innovation to SACCOs, which serve the large population of ordinary people who lack opportunities in banks.