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Q. Define about SME FINANCE?
SMEs contribute in a significant way to many economies in the world. Moreover generating income, in often large proportions in relation to GNP across the world, they are frequently major employers and the sector which is most identified with new ideas and entrepreneurial spirit. It is these latter factors that assist sustain and support growth rates in many economies.
Regardless of this background of potential there is often associated with SMEs difficulties in accessing appropriate sources of finance. There are three major issues involved uncertainty concerning the business, lack of assets available to offer as collateral or security, and the sources of finance for business start-ups or very new businesses.
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