Small scale (~10 km) magnetic field structures of ''flux ropes'' observed in the ionosphere of Venus can be interpreted as the result of a kinematic dynamo process acting on weak seed fields. The seed fields result from the prevailing downward convection of magnetic flux from the vicinity of the ionopause, while small scale fluctuations in the velocity of the ionospheric plasma, which can be caused by collisional coupling to gravity waves in the neutral atmosphere, provide the mechanism by which the field is twisted and redistributed into features of similar scale. This mechanism naturally explains some of the average properties of flux ropes such as the variation of their characteristics with altitude and solar zenith angle. It also elucidates the relationship between the large scale and small scale ionospheric magnetic fields.