{"id":114294,"date":"2021-06-23T12:33:24","date_gmt":"2021-06-23T07:03:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114294"},"modified":"2021-06-23T12:33:24","modified_gmt":"2021-06-23T07:03:24","slug":"the-issue-of-msme-financing-gap","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-issue-of-msme-financing-gap\/","title":{"rendered":"The issue of MSME financing gap"},"content":{"rendered":"\n

Synopsis:<\/span><\/b>\u00a0Micro, small and medium<\/a> (MSME) enterprises\u00a0act\u00a0as the backbone of wealthy economies. However, pandemic has worsened the issue of delayed payments for their goods and services. It is causing MSME financing gap.<\/span>\u00a0<\/span><\/p>\n

What are the issues facing\u00a0MSMEs?<\/span><\/b>\u00a0<\/span><\/h5>\n

Micro, small and medium (MSME) enterprises are the backbone of a healthily balanced economy.<\/span>\u00a0<\/span><\/p>\n

They supply components, intermediate\u00a0goods\u00a0and services at competitive prices\u00a0to big companies.\u00a0<\/span>\u00a0<\/span><\/p>\n

However, they receive delayed payments for their goods and services. It results in\u00a0large portions\u00a0of working capital being blocked. This issue, coupled with often-inadequate credit at reasonable cost, leaves them financially\u00a0unviable\u00a0and unable to plan for growth.<\/span>\u00a0<\/span><\/p>\n

Further, second wave of covid and its associated lockdowns have again aggravated their situation.\u00a0<\/span>\u00a0<\/span><\/p>\n

As per a recent report,\u00a0<\/span>Unlocking Credit for India\u2019s Job Creators<\/span><\/i>, the total outstanding payments to be made to registered MSMEs by buyers in India could be about \u20b915 trillion.<\/span>\u00a0<\/span><\/p>\n

What are the government measures for MSMEs?<\/span><\/b>\u00a0<\/span><\/h5>\n