2014-04-29

Bank funding a concern for MSMEs in major sectors

CRISIL has analysed the funding pattern of micro, small, and medium enterprises (MSMEs) in the pharmaceutical, engineering, and auto-component sectors from 2010-11 to 2012-13.

Bank funding a concern for MSMEs in major sectors

CRISIL has analysed the funding pattern of micro, small, and medium enterprises (MSMEs) in the pharmaceutical, engineering, and auto-component sectors from 2010-11 to 2012-13 (refers to the financial year, April 1 to March 31). The analysis indicates that the share of bank and institutional funding for MSMEs in these sectors is dwindling and such enterprises are increasingly relying on their own resources to fund business growth.

 

Distributed widely across several geographic clusters, these MSMEs contribute significantly to the country's foreign exchange and leverage their easy access to a skilled and semi-skilled workforce to provide sizeable employment opportunities.

 

As per CRISIL's study, MSMEs in the pharmaceuticals, engineering, and auto-component industries respectively employ an average of 143, 88, and 80 persons per unit.

 

CRISIL's study indicates that the share of bank and institutional funding to MSMEs in the engineering and pharmaceutical sectors declined by six per cent and three per cent, respectively in the analysis period.

 

Similarly, trade credit for these two sectors declined by three per cent and seven per cent, respectively. Bank funding for auto-component MSMEs declined by one per cent, albeit with a seven per cent slide in trade creditors. All these MSMEs are relying more than ever on fresh capital infusion, internal accruals, and unsecured loans from promoters, as in the case of enterprises operating in traditional sectors with low value-addition.

Related opportunities
  • Sikh World, was founded in 2008 with the goal of..
    Locations looking for expansion Maharashtra
    Establishment year 2008
    Franchising Launch Date 2023
    Investment size Rs. 30lakh - 50lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Panvel Maharashtra
  • Online Travel Services
    India’s largest and only fully-integrated Travel Solutions brand. Offers a..
    Locations looking for expansion Maharashtra
    Establishment year 1951
    Franchising Launch Date 2023
    Investment size Rs. 10lakh - 20lakh
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Bike Rental
    2WheelR is a new age, tech-enabled retailing platform for end..
    Locations looking for expansion Maharashtra
    Establishment year 2020
    Franchising Launch Date 2023
    Investment size Rs. 20lakh - 30lakh
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Haveli Maharashtra
  • The most trusted luxury day Spa chain. Expertise in Modern Spa Therapies, Ancien..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2023
    Investment size Rs. 20lakh - 30lakh
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Nagpur Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads