The Micro, Small and Medium Enterprises are back bone of the India. They contribute the significant amount to the GDP. They are located equally in both urban and rural areas and it provides high employment. So the governments also taking many actions to the growth of the MSME sector. Even though, the MSMEs in India are still struggle to survive, most of the MSME run loss or very smaller profit. The key issue of the MSME sector is funding. They cannot be able to raise as much funds from public for meet out their requirements. The MSMEs are mainly depend on the debt from other sources rather than banks. Now the MSMEs have many alternative sources to raise the funds. In that sources the external equity is one of the important sources to raise the investment. They have own advantage while considering other sources of finance. It is one of the less used sources of finance by the MSMEs. It is most suitable finance source to the MSMEs. The equity finance will help to avoid some of the major drawbackslike repayment, fixed interest payment of the MSMEs for raising and using of funds.
- International Financial Corporation- “Micro, Small and Medium Enterprise Finance in India” A Research Study on Needs, Gaps and Way Forward (November, 2012)
- Biswajit Bose – “Financing of Micro, medium and small scale enterprises in India Key Challenges” -Volume 1, Issue 1 (May. – Jun. 2013), PP 01-04
- Report of Prime Minister’s task force on Micro, Small and Medium Enterprises, Govt. of India, January, 2010.
- Vision 2020: Implications for MSMEs (2011), Grant Thornton, FICCI.
- Chakrabarty K.C. (June, 2010). Bank Credit to MSMEs: Present status and way forward, RBI monthly Bulletin.
- Annual Report, (2014-15). Ministry of Micro, Small and Medium Enterprise, Government of India.
- Badulescu Daniel. SMEs Financing: The extent of Need and the Responses of Different Credit Structures.
- Final Report (Edition: April, 2011) 4th All India Census of MSME, 2006-07: Registered Sector.
- Risk Capital and MSMEs in India (A SIDBI Publication).
- Resurgent India Limited - MSME Funding – Opportunities & Challenges.
- Business line, (June 8, 2011), Challenge of financing SMEs.
- Government of India Ministry of MSME - MSME Schemes
- PricewaterhouseCoopers Private Limited - Financing for MSMEs the eastside story
- Ayyagari, M., Beck, T., and Demirgüç-Kunt, A., 2007. Small and Medium Enterprises across the Globe. Small Business Economics 29, 415-434.
- Balling M, Bernet B and Gnan E. Financing SMEs in Europe, SUERF-The European Money and Finance Forum, Vienna, 2009.
- Financialexpress, (February 27, 2015), Options in MSME financing.
- Bebczuk RN. What determines the Access to Credit by SMEs in Argentina, Documento de TrabajoNro, 2004, 16(1).
- Ram JassYadav, Issues in SME Financing.
- Beck, T. and Demirgüç-Kunt, A., 2006. Small and Medium-Size Enterprises: Access to Finance as a Growth Constraint. Journal of Banking and Finance 30, 2931–2943.
Cite This Article as:
[Pr. Sreejith and P S. Anil. (2017); A STUDY ON SCOPE OF EXTERNAL EQUITY FINANCE IN MSME UNITS IN INDIA. Int. J. of Adv. Res. 5 (1). 476-485] (ISSN 2320-5407). www.journalijar.com
Article DOI: 10.21474/IJAR01/2770 DOI URL: http://dx.doi.org/10.21474/IJAR01/2770
Share this article
This work is licensed under a Creative Commons Attribution 4.0 International License.