Journal Press India^®

Author Details ( * ) denotes Corresponding author

The Micro, Small and Medium Enterprise (MSME) sector plays a significant role in the Indian economy. A catalyst for socio-economic transformation of the country, the sector is critical in meeting the national objectives of generating employment, reducing poverty, and discouraging rural-urban migration. These enterprises help to build a thriving entrepreneurial eco-system, in addition to promoting the use of indigenous technologies. The sector has exhibited consistent growth over the last few years, but it has done so in a constrained environment often resulting in inefficient resource utilization. Of the many challenges impeding the growth and development of MSMEs, inadequate access to financial resources is one of the key bottlenecks that make these enterprises vulnerable, particularly in periods of economic downturn. MSME sector is currently opening up in India to support startup initiatives, especially in the manufacturing, infrastructure and IT-enabled Services sector. The Government is fully committed now to extend whole-hearted financial and technical cooperation and support to the entrepreneurs to see through a boom in the Start-up industries; as also to fulfil the ‘Make in India’ Mission of the Government. Among other things, the major objectives of this Mission are to enhance the overall economic growth and create enormous job opportunities in India. The paper attempts to highlight the various financing mechanisms to support MSMEs and Startup initiatives in India and the Asia-Pacific Region with focus on the role of the Capital market.

Keywords

MSMEs; Startups; Financing Mechanisms; Capital Market.

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