“India’s SME sector needs to tap alternative sources of finance even going the venture capital way, to counter limited availability of credit as it impedes growth,” says Chairman and Managing Director of Corporation Bank Ramnath Pradeep.
Not getting access to appropriate technology at cost effective terms is another major drawback troubling the SMEs sector primarily due to low levels of education among members involved in this industry. SMEs should therefore, “Educate and empower its workforce to make optimum utilization of resources to achieve success,” continues Pradeep at an event organized by PHD Chamber in New Delhi.
Efforts must be made to help SMEs adopt shared technology like cloud computing. Also SMEs face the problem of receiving adequate and timely finances from banks as the lenders insist on proper papers and documents, which the SMEs find difficult to provide. Thus banks should consider having a one-stop-shop to advise SMEs on all matters relating to finance including preparing project proposals.