Entrepreneurs in micro, small and medium enterprises (MSME) sector have been asked to enhance their knowledge on finance as getting credit continued to be a biggest challenge to them.
Only 5 per cent to 10 per cent of the small units were able to get institutional finance. More than 90 per cent of the entrepreneurs in the MSME sector find it difficult to get funds from financial institutions for their ventures, MSME Development Institute Director S. Sivagnanam has pointed out at the MSME Conclave 2011 held here on Friday.
The government had come up with a number of schemes to fulfil the financial requirements of entrepreneurs. But a majority of the entrepreneurs were not aware of these schemes. “Many entrepreneurs source funds from private money lenders for exorbitant interest rates, which ultimately makes the venture non-viable,” he said.
Mr. Sivagnanam wanted the entrepreneurs to adopt best quality management systems and ensure timely delivery of products / services to emerge successful in their venture.
Earlier, inaugurating the programme, Collector V.K. Shanmugam called upon the entrepreneurs in the MSME sector to contribute more for the corporate social responsibility (CSR) activities.
Entrepreneurs should realise their responsibility towards the community welfare. “Business establishments get the resources from society. So it is necessary for them to contribute back to the welfare of the society,” he stressed.
The Erode Zone of Confederation of Indian Industry (CII) organised the programme jointly with Erode District Small Industries Association (EEDISSIA) and MSME Development Institute to explore various innovative technologies being adopted in the MSMEs and spread awareness among entrepreneurs about various schemes implemented by the government for the sector.
CII Erode Zone Chairman K.M. Abul Hasan, Vice-Chairman S. Ganesan and EEDISSIA president R. Subramanian also spoke in the programme.
