As I mentioned in the beginning, a micro entrepreneur of today will become a small entrepreneur and then a big entrepreneur of tomorrow, and might eventually well become a multinational enterprise if given the comfort of financial support and capacity building. There will be failures and successes. Despite the risk, financing of first time entrepreneurs is a must for financial inclusion and growth.
Banks will therefore, have to tone up their risk assessment and risk management capacities and provide for these failures as part of their risk management. Banks have to recognise the vast potential that exists in responsible lending to the MSE segment. The banks must deliver on their voluntary commitments enshrined in their Code of Commitment to their MSE borrowers.