Challenges Continue to Plague MSMEs

THE MSME SECTOR, often hailed as the backbone of the economy, continues to grapple with challenges that go far beyond the headline credit gap.

- MAHESH NAYAK

"We are looking at the credit gap in isolation, but it is a corollary to deeper structural issues," said Partha Pratim Sengupta, MD & CEO, Bandhan Bank, said at the FIBAC event.

He identified five critical pain points: Lack of equity infusion, elongated working capital cycles due to delayed payments, limited access to technology and skilling, high utility costs, and vulnerability to climate risks. "If the working capital cycle gets elongated, mainly due to non-receipt of payments from large industries, units become unviable."