The availability of debt finance, however, is not adequate as viability of these small units is a major issue. Besides, the high reliance on debt, combined with high cost of credit adversely impacts the financial viability of start-ups, particularly in the initial years, thereby threatening their long-term survival and sustainability. C.  Constraints of banks in lending to the sector  6.
One of the major challenges faced by the MSMEs and more particularly, the micro and small enterprises (MSEs), is access to timely and adequate credit from the banking sector.