the GAME Finance Task Force discusses greater access to formal finance, easing working capital needs, and mitigating risk through insurance.
As India grapples with the COVID-19 pandemic, an immediate challenge is to resurrect the MSME sector that forms 95 percent of all businesses in India. A major source of employment, growth, and innovation in the country, the MSME sector, despite contributing ~30% of GDP, MSMEs accounts for less than 20% of credit exposure to industries. To bridge this gap and provide a fillip to an impending economic resurgence for MSMEs, the Finance Task Force of the Global Alliance for Mass Entrepreneurship (GAME), has launched ‘Unlocking Credit for India’s Job Creators’, a report that brings together insights and actionable ideas from across the Financing ecosystem in India.
Comprising of policymakers, corporate leaders, MSME support organizations, academia, and financiers the GAME Finance Task Force discusses greater access to formal finance, easing working capital needs, and mitigating risk through insurance. Solutions, insights, and data are highlighted to align the interests of all stakeholders and are market-driven, sustainable, and congruent with the commitment to enhancing the ease of doing business. The recommendations also aim to correct for the lack of bargaining power of MSMEs vis-à-vis their large buyers.
Speaking on the launch of the report, Ravi Venkatesan, Founder, GAME said, “With the call for an ‘Aatmanirbhar Bharat’, the Government of India has signaled that MSMEs will drive job creation in India. However, MSMEs in India struggle to grow out of cycles of informality, low productivity, and low scale. Finance is critical to breaking this cycle as entrepreneurs can invest in machinery, upskilling workers, and new units thereby increasing productivity and scaling up. Our report brings together some essential ideas to accelerate finance towards India’s job creators ”
Source: Business World
