small and medium enterprises (sme) funding

Small and Medium Enterprises Funding

Neha JainMalay SrivastavaNaveen Panchal

Vishal B. PatilPGDM-Business Design (2011-13)

Welingkar Institute of Management Development & Research, Mumbai

MSME contributes to 8 % GDP. 45 % of Manufactured Output. 40 % Exports. 26 million MSME Units, 60 million people.

(Source : Economic Survey, Ministry of Finance)

CompetitorsDirect FinanceIndirect Finance.

Direct Finance: cr SBI 1,10,812 ICICI 71720 PNB 45296 Canara Bank 29958 Bank Of Baroda PNB 27365 Bank Of India 21000 UCO Bank 15727 Central Bank of India 11901

Indirect Finance

Indirect Finance includes Finance through purchase of Bonds issued by Government establishments like NABARD etc.

International Players

GoI tied up with Asian Development Bank for $150 mn funds for KVI sector for 3 years. October 2008 (Source : ADB Report)

StakeHolders SME Rating Agency. Banks. Promoters Employee. Promoters GDP Employment generation. Government. Government Schemes. Government Bodies like NABARD, PFC, SIDBI. RBI. Lobbyist. Finance Ministry. NBFC

Breakthrough BankMuscat : In 2006, when BankMuscat had

successfully captured a 40-45% commercial banking market in Oman, the SME opportunity was seized, when no one was targeting the SME sector. Recognizing the opportunity to establish itself as the first Bank to serve SMEs in the country, BankMuscat focused on building knowledge of the sector through market research, including a World Bank study identifying a potential client base of 20,000 SMEs.

Access Bank Plc Nigeria: Successfully reaching the women’s market in Nigeria is key to achieving our retail and small business goals.

Wells Fargo: Experimenting with Marketing Approaches In reaching clients, Wells Fargo has experimented with new ways to offer its solutions to SME needs. The bank was one of the first in the industry to target small business clients using a similar approach to credit card companies. Direct mailings and telemarketing calls from local bank

Standard Chartered: ICICI Bank: Sberbank :

(Source : International Finance Corporation, World Bank Group)