You are here: Home » SME » SME Features
Business Standard

For MSEs, the promoter is the bank to bank on

Business Standard 

Micro and small enterprises (MSEs) are typically promoter-driven, be it operations or financing. A CRISIL study of 6,000 MSEs shows that promoters contribute 50-60 per cent of the net working capital requirement - or twice what they are supposed to contribute - because of restricted access to formal financial institutions. Delays in receivables is a widespread affliction in the sector, which forces promoters to regularly infuse funds to keep the operations going and manage cash flow mismatches. While the Micro, Small, and Medium Enterprises Development Act, 2006, stipulates that ...

TO READ THE FULL STORY, SUBSCRIBE NOW AT JUST Rs 149 A MONTH

Key stories on business-standard.com are available to premium subscribers only.

LOGIN

EMAIL / USER NAME
PASSWORD
REMEMBER ME Forgot password?

Not a member yet ? Resister Now

Connect using any below

  • Don't lose the opportunity of saving $26.77 per month
  • Don't lose the opportunity of saving $26.77 per month
Total Amount
Rs. 0.00
To proceed, kindly select a subscription package

WHAT YOU GET

On Business Standard Digital

  • Access your subscription from anywhere. Be it your computer, tablet or smartphone using a browser or the App, Your Choice.
  • Access to exclusive content, features, opinions and comment, hand-picked by our editors, just for you.
  • Pick your 5 favourite companies. Get all the news upates at the end of each day through E-Mail.
  • Pick the industry that you want to track. And get a daily news letter specific to that industry. Cut out the clutter.
  • And stay on top of your investments. Track stock prices in your portfolio
  • Access 18 years of archival data

On Digital

  • Seamless access to WSJ.com with your Business Standard digital account.
  • Experience the best of the Journal's reporting, video and interactive features.
  • Read about the people and events shaping business, finance, technology, politics, technology and culture.
  • Stay informed with newsletters - an easy way to get WSJ content straight to your inbox - making life easier on your busiest days.
  • More business executives read the Journal globally than any other publication.
*Note :
Our Partners are proud to be associated with this initiative and will contribute Rs 100 x 6 months thereafter, standard rate of Rs 149 will be charged.
Offer valid for Indian residents only
Requires you to share personal information like PAN, Date of Birth, and Income.
*Annual saving on WSJ subscription price of US$ 347.88 (12 months @ US$ 28.99 per month)
* 1US$ = 67.50 INR.
*Please note that this offer is not valid if you are/were a registered/existing user on WSJ Digital
RECOMMENDED FOR YOU

For MSEs, the promoter is the bank to bank on

Micro and small enterprises (MSEs) are typically promoter-driven, be it operations or financing. A CRISIL study of 6,000 MSEs shows that promoters contribute 50-60 per cent of the net working capital requirement - or twice what they are supposed to contribute - because of restricted access to formal financial institutions.Delays in receivables is a widespread affliction in the sector, which forces promoters to regularly infuse funds to keep the operations going and manage cash flow mismatches. While the Micro, Small, and Medium Enterprises Development Act, 2006, stipulates that receivables of MSEs must be limited to 45 days, CRISIL's analysis shows the average is closer to 65 days.Promoters have to also infuse funds during business exigencies such as unexpected spikes in raw material prices, foreign exchange losses, unanticipated large orders, or delays in insurance claims after calamities such as floods or fire or strikes - and ensure timely production and deliveries.Additionally, MSE Micro and small enterprises (MSEs) are typically promoter-driven, be it operations or financing. A CRISIL study of 6,000 MSEs shows that promoters contribute 50-60 per cent of the net working capital requirement - or twice what they are supposed to contribute - because of restricted access to formal financial institutions. Delays in receivables is a widespread affliction in the sector, which forces promoters to regularly infuse funds to keep the operations going and manage cash flow mismatches. While the Micro, Small, and Medium Enterprises Development Act, 2006, stipulates that ... image
Business Standard
177 22

For MSEs, the promoter is the bank to bank on

Micro and small enterprises (MSEs) are typically promoter-driven, be it operations or financing. A CRISIL study of 6,000 MSEs shows that promoters contribute 50-60 per cent of the net working capital requirement - or twice what they are supposed to contribute - because of restricted access to formal financial institutions. Delays in receivables is a widespread affliction in the sector, which forces promoters to regularly infuse funds to keep the operations going and manage cash flow mismatches. While the Micro, Small, and Medium Enterprises Development Act, 2006, stipulates that ...

image
Business Standard
177 22