KredX Blog KredX Blog
  • HOME
  • PRODUCTS
    logo

    FOR BUSINESS logo

    logo

    FOR INVESTORS logo

    Invoice Discounting

    Unlock money tied up in unpaid invoices

    KNOW MORE

    KredX Pay Later

    A closed loop financing for your dealers/distributors/Retailers

    KNOW MORE

    KredX Cash Management Solutions (CMS)

    Get real-time analytics. Manage disputes. Minimise risks. Get risk-free returns

    KNOW MORE

    KredX Global Trade

    Get Quick Finance To Fund Your Import-Export Requirements

    KNOW MORE

    Invoice Discounting

    Diversify your portfolio with alternative short-term investments

    KNOW MORE
  • PARTNER WITH US

    Business Partner Program

    Accelerate your client’s business growth and get attractive payouts on time

    KNOW MORE

    Financial Advisor Program

    Grow your credibility and clients’ investment portfolio

    KNOW MORE
  • KNOWLEDGE CENTER

    FAQs

    Blog

    Knowledge Base

    Webinars

    Reports

    WhitePapers

    Podcasts

  • COMPANY
  • LOGIN / SIGNUP
  1. Home
  2. Economy
  3. Role Of SMEs In The Economic Development Of India
 Role Of SMEs In The Economic Development Of India
Economy

Role Of SMEs In The Economic Development Of India

by KredX Editorial Team September 11, 2018 0 Comment

The Medium and Small business sector is the backbone of any great economy and India is no different. They are the silent engines of economic growth. They will have to serve as the building blocks of growth if India has to achieve its place under the sun of becoming an established Economic Power in the world.

  1. MSME contributes about 45% to manufacturing output
  2. They also contribute about 40% to exports
  3. Provide employment to more than 110 million people (40% of the working population)

Financing Prohibits MSMEs to unleash Full Potential

Financing is the biggest impediment to the success of these MSMEs. Access to finance is constrained mainly due to the unwillingness of the formal sector (banks, investors) to lend given the perceived high risk associated with them. This perception comes from the fact that most of these MSMEs do not have clear financial records nor any collateral to secure the lending. Less than 1/4th of the financing needs of SMEs are met by the formal banking sector.

Unavailability of credit facility causes these small businesses to contribute only around 17% to the India GDP even after employing around 40% of the total workforce. In contrast, small businesses in the developed economies contribute almost 40% to their countries GDP. Appropriate financing could help these businesses to be truly successful.

Bottom Line

We, at KredX, are trying to solve this problem by providing working capital solutions to these MSMEs. KredX uses an amalgamation of technology and sophisticated credit modelling methodologies to identify strong businesses and provide an invoice financing facility. KredX – India’s Premier Invoice Discounting Marketplace helps these small businesses to encash the money tied up in unpaid invoices drawn of established corporates.

Share This:
Tags: economic developments economic growth GDP invoice discounting marketplace KredX MSMEs SMEs working capital
Previous post
Next post

KredX Editorial Team (Website)

administrator

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Enquire now

  • Invalid value

  • Invalid value

  • Invalid value

The Best Of Alternative Investments, Now On Your Phone

Download App:

KredX Blog KredX Blog

Wing ‘A’, Ground Floor, Office-1 Block-‘A’, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Bangalore South Taluk, Outer Ring Road, Bangalore – 560103

+1 212-602-9641

info@example.com

Get More Location

Follow us:

Download app:

Company

Home
About Us
Careers
Contact Us
Our Offices

Resources

Blog
Reports
Whitepapers
Knowledge Base
Podcasts
Webinars

Support

FAQs
Talk To Our Advisor
Chat With Us
Sign Up
Login

Legal

Nodal Officer Name: Amrutha A / Ph: 08061799200, IVR-9 / Email: Amrutha@Kredx.Com
Terms And Conditions
Privacy Policy

Investor Products

Invoice Discounting
Bonds
Digital Gold/Silver
KredX Assured

Business Products

Invoice Discounting
Buy Now Pay Later
KredX Cash Management Solutions
KredX Global Trade

Quick Links

Business Partner Program
Financial Advisor Program
Business Suite
©2022 Minions Ventures Pvt Ltd