Bhanu Mati Doshi
Assistant Professor in Commerce and Management, Vivekananda Global University, Jaipur, India
Article
The development of any country can measure by the growth of their industries. In developing countries like India, small and medium scale industries are the backbone of the economy. SMEs contribute towards poverty alleviation, employment generation, and many more things. There is a rapid growth in innovations day by day and the progress of such innovations depends upon SME through their risk-taking efforts. SME is the need of the country for its industrial expansion and development. SME growth depends upon their financial situation, the lack of finance is a threat of SME performance. Adequate financing of SMEs is dominant to their survival, the financial constraint is the main element of SME’s failure in India. Finance is the key element of SME to perform competitively with other nations and to meet global challenges, they need adequate funds in terms of short term or long term loans. Commercial banks are playing a vital role in providing financial assistance to the SME sector. This study explains the importance of finance for SMEs and how commercial banks can meet these requirements.