Predicting the lifecycle of MSMEs, particularly the Micro units, is a difficult proposition. The micro entrepreneurs neither have keen business acumen nor sizeable resources. As opposed to larger businesses, the inability to respond in time to the vagaries of these business cycles can often prove fatal to the Micro enterprise.
With timeliness of resource support being such a critical element at different stages during the life cycle of small businesses, let me flag a few initiatives which RBI has taken to address the issue. 13. RBI has recently issued licenses to three entities for operating the Trade Receivable Discounting System (TReDS), which when operational, would address a major issue faced by the sector, i.e.