Volume : VIII, Issue : IV, April - 2019

The impact of Bank Financing on the Financial Performance of Micro, Small and Medium Enterprises (MSMEs)

Dr. Sharada. S

Abstract :

Financing Micro, Small and Medium Enterprises [MSMEs] has received much attention in the present scenario due to the Government policy from ‘Made in India’ to ‘Make in India” and ‘Start up India’. This policy has been encouraging entrepreneurs to startup their enterprises. Which helps in development of economy in the way of rural and urban industrialization, generating employment opportunities and entrepreneurial development. Finance is the most important component to run the enterprises. According to research studies stated that lack of adequate access to bank credit is the key factor stifling the growth of MSMEs. The paper sought to determine the adequate bank finance improves the financial performance of MSMEs. The study suggests that commercial banks should develop a credit policies which meets diverse, expected credit and working capital requirements of MSMEs in hassle free manner. The study also suggest the entrepreneurs should formulate financial planning which helps in estimation of finance which required for the business, assess how much funds can be raised through equity and debts and their effective utilizations.

Keywords :

Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

THE IMPACT OF BANK FINANCING ON THE FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES), Dr. Sharada. S INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH : Volume-8 | Issue-4 | April-2019

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