Also, there is a need to eliminate a host of impediments – of permits, of inspections, of red tape and provide a set of enablers – skill development, infrastructure, markets, technology etc. However, of all the enablers, probably none is more important than Credit.
The IFC/Mckinsey has estimated the credit gap for formal and informal MSMEs worldwide at around $ 3.9 trillion globally, of which $ to 2.6 trillion is in emerging markets. The ABCD of credit 9. As I said, credit is perhaps the most critical component for MSME entrepreneurs. Provision for Credit is essentially dependent on four pivotal issues which I would call “ABCD” of credit.