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Role of Microfinance Institutions (MFIs) in Financing Micro, Small & Medium Enterprises


Affiliations
1 Government First Grade College Humnabad, Karnataka, India
2 Department of Management Studies and Research, Visvesvaraya Technological University, Belagavi, Karnataka, India
 

SMEs all over the world play a strong role in national development. This is attributed to the massive employment it provides to the citizenry of the country where it exists. The financing of these ''goose'' which have being laying so many golden eggs has come under scrutiny by academics and practitioners. Finance for micro, small, and medium-sized enterprises (MSMEs) has been a concern for all stakeholders including entrepreneurs, financial institutions, and government organizations. The key objective of the study was to identify various challenges faced by MSMEs in sourcing of finance during different stages of their life cycle. The objective of this study was to investigate the role of financial institutions on the growth of small and medium enterprises and to give recommendations based on the problems. Despite the tremendous increase in number of SMEs, little research exists that examines role of financial institutions; banks and microfinance institutions; on the growth of small and medium enterprises in developing countries, especially India.

Keywords

MFIs, Micro, Small, Medium, Enterprises, Financing, Growth, Institutions.
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  • Role of Microfinance Institutions (MFIs) in Financing Micro, Small & Medium Enterprises

Abstract Views: 549  |  PDF Views: 333

Authors

Mallikarjun Bali
Government First Grade College Humnabad, Karnataka, India
Pralhad Rathod
Department of Management Studies and Research, Visvesvaraya Technological University, Belagavi, Karnataka, India

Abstract


SMEs all over the world play a strong role in national development. This is attributed to the massive employment it provides to the citizenry of the country where it exists. The financing of these ''goose'' which have being laying so many golden eggs has come under scrutiny by academics and practitioners. Finance for micro, small, and medium-sized enterprises (MSMEs) has been a concern for all stakeholders including entrepreneurs, financial institutions, and government organizations. The key objective of the study was to identify various challenges faced by MSMEs in sourcing of finance during different stages of their life cycle. The objective of this study was to investigate the role of financial institutions on the growth of small and medium enterprises and to give recommendations based on the problems. Despite the tremendous increase in number of SMEs, little research exists that examines role of financial institutions; banks and microfinance institutions; on the growth of small and medium enterprises in developing countries, especially India.

Keywords


MFIs, Micro, Small, Medium, Enterprises, Financing, Growth, Institutions.

References