In India about 20% of SMEs close within 1 year of operation and about 50% wind up within 5 years due to various factors which are not conducive to SMEs. SMEs should approach Banks at the start of the distress and Banks should also proactively support the genuine SMEs in difficult situations.

Speaking on the occasion,  Ashwani Kumar, Chairman & Managing Director, ‘emphasized that in order to compete both at domestic and international markets, Indian SMEs should strongly focus on the 3 C’s–Connect, Compete and Change. He said that Dena Bank is giving a strong focus to credit under Entrepreneurship Development as SME‘s are vital contributors to the GDP of the country’.

However, at present the contribution of the sector is much lesser when compared with developed countries. The problems for SMEs still continue in our country and finance poise as the major issue for the survival & growth of SMEs. But off late, Banks have come out more aggressively in financing to SMEs.

Ashwani Kumar stressed that banks should not stipulate collateral for small loans and should extend CGTSME – collateral free loans to eligible SMEs. He also presented the 17th India SME Excellence Award to Entrepreneurs. Banks have started aggressively financing to SME sector complimenting the Governments initiatives like ‘Make in India’, ‘Skill India’ and ‘Startup India’, and credit to SME sector is expected to increase substantially which should boost the sector across the country.

Micro Small and medium sized enterprises have also global mention in the UN Global goals -2015. Goal-8 promotes and encourages the formulation of MSME’s and Goal 9 encompasses the themes that are key for improving SME competitiveness.

 Source: Newsvoir