Despite the rapid growth of the small and medium scale industries in India, authorities have noticed a substantial number of insolvencies, resulting in premature closing of many businesses across the nation.
A recent study showed that the average tenor of a registered manufacturing enterprise in SMEs and MSMEs sector stood at 15 years, which is significantly less than the world’s average.
Market experts have concluded that these issues primarily occur because of limited exposure to various protocols and procedures required to run a successful business.
A substantial number of entrepreneurs start their endeavour without any prior training or knowledge of the market. They are also unaware of several important aspects like supply chain, channel finance, invoice finance, etc.
This has led to various government initiatives to train future entrepreneurs in business studies, as well as several financial assistance programs to ensure an assured flow of finance whenever required.
Business loans offered by various government-backed as well as non-banking financial companies also help build a stable monetary backbone for industries across the nation.
With proper training and financing, small and medium scale enterprises across India is likely to prosper at a significantly better rate, ensuring better growth, market reach, and quality of products that will contribute to India’s manufacturing prowess.