Ease of Doing Business for MSMEs: The major barriers hindering the growth of enterprises, as indicated by the survey, include the lack of availability of short-term loans (38 per cent), lack of flexible credit or spending limits (19 per cent), and payment delays from customers among other factors.
Ease of Doing Business for MSMEs: The foremost demand of the Indian MSMEs (approximately 55 per cent) is an instant line of credit to accelerate day-to-day decision-making related to inventory management, hiring, and procurement, amongst others as their foremost priority, said the survey by MSME-focused fintech Kinara Capital.
The MSME Sentiment survey analysed inputs from 2,600 Udyam registered MSMEs across the manufacturing, trading, and services sector in six states: Gujarat, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, and Telangana.
The survey also revealed additional demands from the MSME sector, including the need for a flexible repayment product for debt payback (16 per cent), increased access to commercial vehicle loans (15 per cent), and two-wheeler loans for business purposes.
The major barriers hindering the growth of enterprises, as indicated by the survey, include the lack of availability of short-term loans (38 per cent), lack of flexible credit or spending limits (19 per cent), and payment delays from customers among other factors.
In terms of non-financial demands, approximately 24 per cent of MSMEs expressed the importance of networking with buyers and sellers. Additionally, 21 per cent of MSMEs highlighted the need for digitization of their businesses, such as online services for website creation and online selling. Moreover, MSMEs sought guidance in business support services like accounting, tax filings, GST calculation, and filing support.
Out of the 2,600 MSMEs surveyed, 65 per cent were traders, 32 per cent were manufacturers, and three per cent were service providers.
