Every organization needs funds to carry out its functions where it is rightly said that “No one can make millions and keep millions without learning about finance” which indicates that finance is the bottom line of all business activities. It is the lubricant which keeps an enterprise running. The time and availability of finance in any organization indicates the health of a concern. According to F.W Paish Finance is defined as “the position of money at the time it is wanted.” It also provides framework for making decision as to how to get funds and what should be doneonce we get it. It is the financial system that provides the platform by which funds are transferred from those entities that have funds to those entities that need funds. Finance plays an important role in MSME sector which is the backbone for Indian economy, engine for economic growth and promotes equitable development all over the world. MSME plays a key role in contributing to industrial output, exports and majority in employment generation at low capital cost. The paper highlights on the pillars of finance, sources of raising finance, barriers in raising finance, and problems of MSME sector. At the end of the paper the challenges hampering the growth of MSME sector is identified and concludes by suggesting ways in which MSME sector can grow and enhance its survival.
Barrier, Finance, MSME, growth and employment generation
