1Poornaprajna College (PPC), Udupi, Karnataka
Despite the preferential treatment of the MSME sector in India, such firms are plagued by several obstacles. Among the set of constraints faced by these firms, access to finance is reported to be the most pressing obstacle. Majority of these units do not have access to the formal banking system and are forced to borrow from informal sources, or use their limited own funds. In this context, policymakers have realized the need to provide a helping hand to this sector and have undertaken a host of initiatives such as credit guarantee schemes, promotion of women entrepreneurship, and marketing assistance for accelerating the growth of this sector. Hence The Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency Ltd Yojana (PMMY) was introduced. Studies reveals that Total disbursements under PMMY during FY 2017-18 stood at Rs. 2,46,437 crore. Out of this, 40% has been disbursed to women entrepreneurs and 33% has been disbursed to social categories (SC/ST/OBC) and it is not enough to the entrepreneurship development.
