The Role of KSFC in Promotion of Enterprises and Employment Generation in Karnataka

The economic development of any country depends upon the existence of a well and strong organized financial system. It is the financial system which supplies the necessary financial inputs to enterprises or industries for the production of goods and services which in turn promote the well-being and standard of living of the people of the country by generating good number of employment opportunities. Financial system of any country consists of financial markets, financial institutions and financial instruments. State Financial Corporation's (SFCs) are also a part of financial system contributes for economic development of the country. The present study addresses on role of Karnataka State Financial Corporation (KSFC) in promotion of enterprises and employment generation for economic development. From the survey data it is found that KSFC promoted 1.66, 726 enterprises by investing nearly Rs. 12, 226.27 crore over the last 54 years since its inception as on 31-3-2013 and generated or created approximately more than 10 lakhs of employment to the people of the Karnataka. From the present study, it is found that for last six years i.e. from 2007–08 to 2012–2013 KFSC financed 4057.89 crore of amount for promoting 8, 696 enterprises in the state of Karnataka with creation of employment to 55, 149 persons. And also it is found that KSFC focus on development Micro, small and medium enterprises as its inception objective. If we look at the performance of the Karnataka State Financial Corporation is really admirable.