More than 83% of small businesses cannot access finance despite a host of measures taken to deepen credit, especially in the aftermath of the pandemic, according to a recent survey.
The survey of B2B platform Tradeindia also showed that 63% lack technological know-how, domain knowledge and advice for business loans.
“More than 83 percent of the country’s SMEs needed access to financing and investment solutions,” according to survey of 50,000 small and medium-sized enterprises with turnover of 5 to 50 crore of rupees.
Tradeindia chief executive Sandip Chhetri said the investigation had yielded “disturbing data”.
“With such a large percentage of companies still unable to benefit from financial credit and investment solutions due to technology shortcomings or lack of knowledge, it is incumbent on industry cohorts in various verticals to help them. “said Chhetri.
The survey results come despite the government and other regulators launching targeted measures to boost lending to SMEs, which are a major driver of the economy due to employment. and the massive activity they create.
The challenges that small businesses face in accessing credit include lack of knowledge about business lending processes, he said, adding that the majority of them have a shortage of capital due to a lack of capital. restricted access to finance and credit.
As many micro-businesses operate in remote and remote locations, they also lack the essential technical knowledge needed to qualify for fast digital loans, according to the report.
Tradeindia said it is organizing a summit to connect SMEs with non-bank lenders and fintechs to help the former access loans.
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Posted on: Friday September 17th, 2021 19:44 IST