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2010-04-12

Separate fund for SMEs, demands Assocham

Assocham demands a separate fund for financing the SME sector, as this will ensure steady supply of finances to the sector thereby, better productivity.

Assocham demands a separate fund for financing the SME sector, as this will ensure steady supply of finances to the sector thereby, better productivity.

 

A study released by Assocham said that MSEs are running at close to 70 per cent capacity utilisation only due to paucity of funds, arising out of unduly delayed payment of their dues.

 

The study also said that nearly 75 per cent of sick small and medium enterprises attribute their sickness and lower capacity utilisation to poor availability of funds, adding that the banking sector is skeptical about extending credit to them.

 

The study said apart from funds, lack of expertise in marketing is also affecting their growth.

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