{"id":2650,"date":"2021-08-31T12:12:23","date_gmt":"2021-08-31T12:12:23","guid":{"rendered":"https:\/\/news.sap.com\/india\/?p=2650"},"modified":"2023-08-14T18:16:21","modified_gmt":"2023-08-14T18:16:21","slug":"msme-growth-challenges","status":"publish","type":"post","link":"https:\/\/news.sap.com\/india\/2021\/08\/msme-growth-challenges\/","title":{"rendered":"How MSMEs Can Address Their Growth Challenges"},"content":{"rendered":"

In a survey conducted by Facebook, the OECD, and the World Bank of more than 30000 MSMEs across 50 countries, 32% SMBs referenced a need for salary subsidies, another 32% asked for tax deferrals and 29% sought access to loans and credit to offset ongoing cash flow and demand-side problems. In India, the percentage of MSMEs with access to formal credit systems varies between 16 to 30% in various reports. While the banking penetration is almost complete, access to formal credit remains a challenge. The rigid credit disbursal processes and lack of understanding of the documentation needed to seek credit limits through formal channels are the major constraints. These are being addressed through various start-up schemes and financial inclusion programs.<\/p>\n

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While the larger credit issues are being addressed by the Governments and regulators, MSME Owners and Senior Management need to define their strategy and create activities to come out of the prevalent challenges. With a clear understanding of their Operational and Financial Strengths, MSMEs would be able to survive, sustain and grow by adopting a 2-pronged approach \u2013 Internal Optimization and Building Global Outlook.<\/p>\n

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\"MSME<\/p>\n

Download the Checklist<\/a><\/p>\n

Internal Optimization<\/u><\/strong><\/p>\n

Depending on their challenges, an MSME may use the following strategies:<\/p>\n