How GAME and its alliance partners are supporting MSMEs with the right financial solutions for their businesses

0 CLAPS
0

India has approximately 6.5 crore micro, small and medium enterprises (MSMEs), assessed debt demand of which is Rs 69.311 lakh crore, of which only 16 percent is formally financed. MSMEs require capital that is affordable, appropriately timed, and on equitable terms. However, the report Unlocking Credit For India’s Job Creators published by the Global Alliance for Mass Entrepreneurship (GAME) reveals that the credit and finance market in India fails to deliver on these goals.

For example, most MSMEs are unable to take loans without collateral of property, as they are unable to convey the viability of their business plans to the financiers. Similarly, repayment is typically structured as equal monthly instalments (EMI), even though many micro-enterprises prefer to repay in daily or weekly instalments. Such differences emphasise the heterogeneity in India’s MSME landscape and call for greater diversity or customisation in finance offerings.

Solution to challenges

Small and medium businesses affected most by the pandemic have also struggled to get appropriate working capital on favourable terms. This has adversely affected the operational efficiency, and even the survival of several firms, including the most promising and growth-minded ones.

“We know about the challenges but there is an urgent need to increase awareness of financial solutions available. Addressing the informational gap of alternative solutions in the market among entrepreneurs and service providers, GAME and its alliance partners have initiated an awareness campaign, #solutionsapnaobusinessbadhao,” says Mekin Maheshwari, Co-founder, GAME.

This campaign, launched in September, is directed at entrepreneurs all over the country, taking on different themes and directing entrepreneurs to alternative solutions that can help them immediately.

The alliance of 11 partners supporting the campaign consists of factoring platform like TReDs, RXIL and M1Xchange; fintechs such as CredAble and Vayana Network, who reach deep into supply chains to reach the underbanked and use the power of technology to inspire banks to lend; business solutions provider Haqdarshak, whose focus is on bringing new solo and nano entrepreneurs into the formal fold and helping them create their first loan application.

The MSMEs can access these solutions by logging onto Entrepreneur Mart, which will put them in direct contact with service providers.

The #solutionsapnaobusinessbadhao campaign has touched almost 35 lakh small and medium enterprises all across the country, and has already received 273 calls on Entrepreneur Mart. The finance campaign, including eight ads that disseminate information about sources of financial support, has been viewed almost 1 million times.

GAME hopes this campaign encourages more people to join the movement and support 6 crore MSMEs in the country to get the right financial solutions for their business.


About GAME

Global Alliance of Mass Entrepreneurship is an organisation whose mission is to catalyse an India-wide movement of entrepreneurship and favorable conditions for the growth of both existing and new enterprises, resulting in 50 million new jobs by 2030 where at least a quarter of new businesses are women- owned.

Latest

Updates from around the world