Lack of credit, infrastructure, logistics and marketing support are the main challenges faced by small and medium enterprises (SMEs), said experts at a panel discussion on the Key challenges faced by SMEs in Mumbai on Wednesday.
Speaking on the occasion CGM–West, SIDBI, SVG Nandagopal said that the lack of access to credit was a key concern, of the 26 million MSMEs (micro, small and medium enterprises) in the country.
"Only about 5 percent were accessing banks loans," he added.
He said that the SIDBI was trying to help smaller units by giving them loans that could be used as equity capital.
Meanwhile CGM, SME, State Bank of India, Manas Kumar Nag felt that the insufficient infrastructure, logistics and marketing support are among the main challenges faced by SMEs.
"Moreover, government aid usually reaches them after two years," he added.
"Most MSME units get into the weak or sick mode within the first 16 months of operation," observed Sanjay Sethi, secretary – MSME, government of Maharashtra.
Sethi suggested SMEs could look at tie-ups with engineering colleges and research institutes to upgrade their technology and skills.