The purpose of our study is to disentangle the reasons behind the stagnation of new ventures obtaining government financing support in the context of a developing economy (i.e., the case of Oman). Our findings are expected to shed some light on the factors that prevent new firms from growth in developing economies despite the financial support they receive from public institutions. We build on previous work on entrepreneurship policy, human capital and new firm growth to argue that providing small business loans may be a necessary, yet insufficient condition to achieve venture growth as the founders (and recipients of the government financing support) often lack human capital attributes to scale up their new businesses in disadvantaged contexts.