The Role of Venture Capital Finance to Floriculture Business Performance in Arusha, Tanzania

Abstract

This paper Researched on the provision of finance to Agribusiness in rural- urban in developing economies to support business start-up and growth, enhance access to finance, market and technical management support. The study analyzed the relationships between floriculture business and financers and explored on business ownerships and financial packages that cater for useful finance for start-up, expansion and settled performance. Analysis of these relations enabled us to study critical shortage of finance and limitations to access finance as experienced in investments perceived with high potential returns, attractive product and high product marketability in rural and urban areas. On the other hand the study of relationships between lenders and borrowers in agri-sector has triggered search for sustainable financing model, effective management and development of Agribusiness as opposed to supply-driven finance, short-termism, collateral-based financing approaches in agriculture and small business sectors.  Business undertaking in Agriculture sector is still perceived by banking and other traditional financial institutions as high risk investment, high uncertainty of returns, and high production risks, too dependent on climate and weather effects. This has left away investments with high potential return and greater contribution to economic development with dismal finances. Thus this research identified venture finance method could be deployed to reduce investor perceived uncertainty, raise supply of finance and credit to agribusiness.