{"id":1379,"date":"2018-09-11T09:36:46","date_gmt":"2018-09-11T09:36:46","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=1379"},"modified":"2024-12-23T05:28:04","modified_gmt":"2024-12-23T05:28:04","slug":"role-of-smes-in-the-economic-development-of-india","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/role-of-smes-in-the-economic-development-of-india\/","title":{"rendered":"Role Of SMEs In The Economic Development Of India"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1379\" class=\"elementor elementor-1379\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-67505ffe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"67505ffe\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-32713c78\" data-id=\"32713c78\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-231cb3b8 elementor-widget elementor-widget-text-editor\" data-id=\"231cb3b8\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: justify;\">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.<\/p><ol style=\"text-align: justify;\"><li>MSME contributes about 45% to manufacturing output<\/li><li>They also contribute about 40% to exports<\/li><li>Provide employment to more than 110 million people (40% of the working population)<\/li><\/ol><h2 style=\"text-align: justify;\"><strong>Financing Prohibits MSMEs to unleash Full Potential<\/strong><\/h2><p style=\"text-align: justify;\">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\/4<sup>th<\/sup>\u00a0of the financing needs of SMEs are met by the formal banking sector.<\/p><p style=\"text-align: justify;\">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.<\/p><h2><strong>Bottom Line<\/strong><\/h2><p style=\"text-align: justify;\">We, at KredX, are trying to solve this problem by providing <a href=\"https:\/\/www.kredx.com\/business\/working-capital\/\">working capital solutions<\/a> to these MSMEs.\u00a0KredX\u00a0uses an amalgamation of technology and sophisticated credit modelling methodologies to identify strong businesses and provide an invoice financing facility. KredX \u2013 India\u2019s Premier <a href=\"https:\/\/www.kredx.com\/working-capital\/invoice-discounting\">Invoice Discounting<\/a> Marketplace helps these small businesses to encash the money tied up in unpaid invoices drawn of established corporates.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[255],"tags":[220,221,222,66,76,77,79,38],"class_list":["post-1379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economic-developments","tag-economic-growth","tag-gdp","tag-invoice-discounting-marketplace","tag-kredx","tag-msmes","tag-smes","tag-working-capital"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=1379"}],"version-history":[{"count":16,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1379\/revisions"}],"predecessor-version":[{"id":19714,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/1379\/revisions\/19714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/5347"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=1379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=1379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=1379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}