This study investigates how venture capital funding impacts SME performance in Lusaka, Zambia. SMEs are crucial for Zambia’s economic growth, but face challenges accessing financing, especially in their early stages. Venture capital offers potential solutions by providing capital and expertise for SMEs to thrive. However, there’s a gap in understanding how exactly venture capital influences SME growth and performance, and the contextual factors at play. The research, based on the economic theory of the entrepreneur, used a mixed study design and achieved a 100% response rate from 102 SME owners/managers through questionnaires. Analysis reveals a positive correlation between venture capital funding and SME performance, along with the importance of financial management skills. Challenges include limited access to venture capital, awareness issues, and regulatory hurdles. Recommendations include developing growth-centric business plans and enhancing awareness of venture capital benefits for SMEs.
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