1Research Scholar, DoS in Commerce, University of Mysore, Manasagangotri, Mysore, India
2Associate Professor, DoS in Commerce, University of Mysore, Manasagangotri, Mysore, India
Online published on 21 November, 2017.
Many thinkers percept, Small Scale Industries (SSIs) are the focal point of Economic growth. In order to support Small Scale Industries, various, Central, State and Private Institutions, such as, IFCI, IDBI, SIDBI, SFCs, NSIC, Venture Capital firms, etc. have evolved in India. These institutions are playing very vital role in facilitating financial and non financial resources for Small Scale Industries according to their desires. But, many researchers proved that SSIs are facing financial problems. Here the researcher has made an attempt to give an overview of institutional framework for financing MSME sector in India with an objective “to study the financing institutions for Micro Small and Medium Enterprises in India”. The study is descriptive in nature and mainly relayed on secondary sources of information. Finally researcher found that there are many national and state level financing institutions are existing to promote MSMEs but these institutions are concentrated in urban areas, but majority of the MSMEs are located in Rural areas. So the researcher suggest to the funding agencies to establish their branches at every Taluks, Hoblis, and Panchayat levels in order to make the free flow of finance to MSME sector to make their operations much more lucrative.
