In spite of many government plans and incentives, small and medium-sized enterprises (SMEs) in India suffer intrinsic funding hurdles, according to a recent research by the Federation of Indian Chambers of Commerce & Industry (FICCI). The FICCI research emphasises how SMEs in India are transforming and being resilient.
According to the survey, the most popular funding source for SMEs to establish and operate a business was bank loans, which were followed by own capital or self-funding. Out of all SMEs, the largest percentage (85%) have utilised bank loans to establish and operate their businesses. These are followed by companies that have used their own capital or self-funding (50%), NBFCs (30%), and informal lenders (friends, family, and moneylenders) (26%).