The purpose of this paper is threefold covering a review of enterprise financing mechanisms, examination of the concept of Venture Capital (VC) and its operations in developed and emerging countries, and proposing a community-based VC model as appropriate to small emerging markets. The research methodology involves primarily, reviews of published data on the VC industry and analysis of raw statistical data on the performance of VC in major developed and emerging countries, US, Europe, China, and India. The main finding of the paper is that VC, as a business financing tool, has a significant role to play in expanding the menu of financing options and facilitating business development in emerging countries and small and medium sized businesses. The overall conclusion is that the models of VC financing available are more suited to developed country markets and there is no model appropriate to smaller markets for which a community-based VC model is fit for the purpose.
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