The Small and Medium Enterprises (SME) sector in India has grown leaps and bounds over the past decade owing to several factors like increasing availability of growth opportunities for such businesses, and adoption of innovative technology. The rapid development being witnessed in the sector is also leading many stakeholders to invest in small businesses, and further contribute to the sector’s growth. The Indian SME sector also happens to be one of the fastest growing markets in the country, and also contributes significantly to the nation’s Gross Domestic Product (GDP).
According to a report published by CII, the SME/MSME sector in India is comprised of over 51.1 million units, and contributes nearly 7 per cent to the country’s manufacturing GDP. Another report suggests that MSMEs contribute nearly 8 per cent to the country’s GDP, 45 per cent of the manufacturing output, and 40 per cent of the exports. The sector also provides employment to more than 120 million individuals across the country. Moreover, it is touted to be a market full of potential to nurture talent, entrepreneurship, and innovation across multifarious industries.
Financing in Indian SME sector
In terms of financing, the Indian SME sector had to face some challenges regarding access to financial assistance or credit instruments due to lack of awareness and poor policy implementation.
However, these days, many SMEs in India are now receiving financial support from various banking institutions and Non-Banking Financial Companies (NBFCs) to further expand their business reach across a wider spectrum. Apart from these, there are several other ways for small enterprises to optimize cash flow while upscaling business operations. Let us explore how using the following methods can help small businesses in improving their financial situation:
No comments:
Post a Comment