India has approximately 6.5 crore MSMEs, assessed debt demand of which is INR 69.311 lakh crores, of which only 16% is formally financed. MSMEs require capital that is affordable, appropriately timed, and on equitable terms. However, the report Unlocking Credit For India’s Job Creators published by Global Alliance for Mass Entrepreneurship (GAME) reveals that the credit and finance market in India fails to deliver on these goals. For example, most MSMEs are unable to take loans without collateral of property, as they are unable to convey the viability of their business plans to the financiers. Similarly, repayment is typically structured as equal monthly instalments (EMI), even though many micro-enterprises prefer to repay in daily or weekly instalments. Such differences emphasise the heterogeneity in India’s MSME landscape and call for greater diversity or customisation in finance offerings.

Small and medium businesses affected most by the pandemic have also struggled to get appropriate working capital on favourable terms. This has adversely affected the operational efficiency, and even the survival, of several firms, including the most promising and growth minded ones.

 “We know about the challenges but there is an urgent need to increase awareness of financial solutions available. Addressing the informational gap of alternative solutions in the market among entrepreneurs and service providers, GAME and its alliance partners have initiated an awareness campaign, #SolutionsApnaoBusinessBadhao”, said Mekin Maheshwari, Co-Founder of GAME.

This campaign launched in September is directed at entrepreneurs all over the country, taking on different themes and directing entrepreneurs to alternative solutions that can help them immediately. The alliance of 11 partners supporting this campaign consists of factoring platform like TReDs, RXIL and M1Xchange; finTechs such as CredAble and Vayana Network, who reach deep into supply chains to reach the underbanked and use the power of technology to inspire banks to lend; business solutions provider Haqdarshak, whose focus is on bringing new solo and nano entrepreneurs into the formal fold and helping them create their first loan application.

The MSMEs can access these solutions by logging onto Entrepreneur Mart, which will put them in direct contact with service providers.

The #SolutionsApnaoBusinessBadhao campaign has been received warmly, and has shown favourable results. It has touched almost 22 lakh small and medium enterprises strewn all across the country, and has already received 182 calls on Entrepreneur Mart. The finance campaign, including 8 ads that disseminate information about sources of financial support, has been viewed almost 7 lakh times.

GAME hopes this campaign encourages more people to join the movement and support 6 crore MSMEs in the country to get the right financial solutions for their business.