As a catalyst agency for Indian MSMEs, Federation of Indian Small and Medium Enterprises (FISME) has some ongoing programmes under three verticals - market access, policy reforms, and implementation of externally funded MSME development projects.
The newly elected FISME President, D Gandhikumar, shared his views on the present three-pronged focus of FISME. He said, “We will continue to work upon three areas for the development of Indian MSMEs. These priority areas will be marketing, policy reforms, and MSME development activities. Out of these issues, I would like to particularly focus on issues related to marketing this year.”
Sharing his outlook on his new assignment, as he has just joined FISME, Gandhikumar said, “I am aware of the daunting responsibilities that the job entails, and I can only carry them out with the co-operation and support of MSME members, friends and well-wishers of FISME. I humbly seek your guidance and suggestions on how FISME can become more relevant to the needs and issues of MSMEs and which new grounds should we break to bring India among the top 10 entrepreneur-friendly nations in the world.”
VK Agarwal, immediate past President, FISME, emphasized on three critical factors that have negatively affected SME exchanges. These three factors can be attributed to the slow progress of SME exchanges: lack of enthusiasm amongst investors, reluctance of merchant bankers to take on assigned responsibilities, and high cost to issuers.
Suggesting the way forward, Agarwal said, “FISME stresses that in order to enable SME exchanges to take off, a stipulation from the Government of India is needed for FIs, MFs, insurance companies and banks to invest a certain small portion of their funds earmarked for capital market to issues on SME exchanges. Additionally, the lender banks of the issuers may also be encouraged to subscribe to issues of their borrowers with whom they may have taken exposure and be enjoying an extended satisfactory relationship.”
It is noteworthy that entrepreneurs, who often complain about raising capital for their businesses, need to have up-to-date information about the latest trends in the field. Although banks do offer SME-oriented schemes, businesses need to understand that there are newer avenues for getting financial support available as well.